The theory of the firm under perfect competition — Economics STD 12 Humanities & Commerce — Question

In Which year was the Reserve Bank of India established ?

The process of adding to physical stock of capital is known as:

1. Investment.
2. Savings.
3. Capital formation.
4. Both (a) and (c).

Oligopolistic industries are characterized by:

1. A few dominant firms and substantial barriers to entry.
2. A few large firms and no entry barriers.
3. A large number of small firms and no entry barriers.
4. One dominant firm and low entry barriers.

If budgetary deficit is nil and borrowings and other liabilities are 70 crore, what is the amount of fiscal deficit?

1. Nil.
2. 30 crore.
3. Can't say.
4. 70 crore.

How are goods X and Y when, as a result of rise in the price of good-X , demand for good-Y increases?

1. Substitute goods.
2. Complementary goods.
3. Normal goods.
4. Inferior goods.

Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely: (Choose the correct alternative)

1. To rise.
2. To fall.
3. To rise or to fall.
4. To remain unaffected.

Foreign exchange is demanded by _______.

1. domestic residents to purchase goods and services from other countries.
2. sending gifts and grants to foreign countries (abroad).
3. the domestic residents to purchase financial assets in a particular country.
4. all of them.

Suppose the demand and supply curve of a Commodity-X is given by the following two equations simultaneously:
Qd = 200 - p
Qs = 50 + 2p

1. Find the equilibrium price and equilibrium quantity.
2. Suppose that the price of a factor of production producing the commodity has changed, resulting in the new supply curve given by the equation

Qs' = 80 + 2p
Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.

Which of the following is not correct about consumer equilibrium through utility analysis?

1. Law of Marginal Utility does not operate.
2. Remains constant.
3. _______ =.
4. Consumer is rational.

TC curve is ________ shaped starting from ________.

1. Inverse–S, origin.
2. Inverse–S, total fixed cost level.
3. Straight line, average fixed cost level.
4. Straight line, total fixed cost level.