Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question

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.

If in an economy investment is greater than saving, national income of the economy,

1. Increases.
2. Decreases.
3. Remains constant.
4. None of them.

Movement along the supply curve is also called:

1. Change in supply.
2. Change in quantity supplied.
3. Contraction in supply.
4. Increase in supply.

MC curve is ________ shaped.

1. L-shaped.
2. Straight line.
3. U-shaped.
4. Inverse S-shaped.

Increase in the value of domestic currency by the government is called _______.

1. depreciation.
2. devaluation.
3. revaluation.
4. appreciation.

A consumer demands 5 units of a commodity at the  price of ₨4 per unit. He demands 10 units when the price falls to Rs3 per unit. Price elasticity of demand is equal to:

1. 3
2. 4
3. 2
4. 1.5

Which of the following formula is correct for calculating marginal cost? (Choose the correct alternative)

1. MC_N = TFC_n - TFC_N–1
2. MC_N = AC_N - AC_{N – 1}
3. MC_N = AVC_N - AVC_n–1
4. MC_N = TC_n - TC_N–1

_______ is a situation when 'managed floating' is exercised by the Central Bank.

1. Crawling peg
2. Spot market
3. Dirty floating
4. None of these

In perfect competition:

1. There are barriers on the entry of new firms.
2. Each firm can influence the price of the good.
3. There are few buyers.
4. All the firms in the market sell their product at the same price.

If the total cost curve is parallel to X-axis, marginal cost will:

1. Increase.
2. Decrease.
3. Zero.
4. None of these.