Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

Differentiated products is a characteristic of: (Choose the correct alternative)

1. Monopolistic competition only.
2. Oligopoly only.
3. Both monopolistic competition and oligopoly.
4. Monopoly.

Price-taking firms, i.e., firms that operate in a perfectly competitive market are said to be "small" relative to the market. Which one of the following options best describes this smallness?

1. The individual firm must have fewer than 10 employees.
2. The individual firm faces a downward-sloping demand curve.
3. The individual firm has assets of less than ₹ 20 lakh.
4. The individual firm is unable to affect market price through its output decisions.

Which one of the following statements is correct?

1. When the marginal cost is rising, the average cost must also be rising.
2. When the average cost is rising, the marginal cost must be falling.
3. When the average cost is rising, the marginal cost is above the average cost.
4. When the average cost is falling, the marginal cost must be rising.

While financing a deficit, under which measure government can print more currency:

1. Deficit financing.
2. Disinvestment.
3. By issuing bonds.
4. None of them.

Price discrimination is one of the features of ___________.

1. monopolistic competition.
2. monopoly.
3. perfect competition.
4. oligopoly.

Buyers and sellers of foreign exchange are _______.

1. central banks.
2. commercial banks.
3. brokers.
4. all of them.

Which objective of government budget increases equality in the society?

1. Re-distribution of income and wealth.
2. Economic stability.
3. Allocation of resources.
4. Economic growth.

When average product (output) increase, marginal product is:

1. Equal to average product.
2. Greater than average product.
3. Less than average product.
4. Zero.

The study of microeconomics and macroeconomics is _____.

1. Independent of each other.
2. Interrelated to each other.
3. Both (a) and (b).
4. None of the above.

The point on production possibility curve indicates:

1. Fuller utilisation of resources.
2. Under utilisation of resources.
3. Over utilisation of resources.
4. Zero utilisation of resources.