Market Equilibrium — Economics STD 12 Humanities & Commerce — Question

Contraction of supply is the result of:

1. Decrease in the number of producers.
2. Decrease in the price of the goods concern.
3. Increase in the prices of other goods.
4. Decrease in the outlay of sellers.

Marginal Revenue is equal to:

1. The change in price divided by the change in output.
2. The change in quantity divided by the change in price.
3. The change in P Q due to a one unit change in output.
4. Price, but only if the firm is a price searcher.

The graphic presentation of a table showing price and demand relationship for a commodity in the market is called:

1. Individual demand curve.
2. Producer’s demand curve.
3. Market demand curve.
4. Consumer’s demand curve.

Assume that consumers' incomes and the number of sellers in the market for goods A both decrease. Based upon this information, we can conclude, with certainty, that the equilibrium _________.

1. price will increase.
2. price will decrease.
3. quantity will increase.
4. quantity will decrease.

Aggregate demand can be increased by:

1. Increasing bank rate.
2. Selling government securities by Reserve Bank of India.
3. Increasing cash reserve ratio.
4. None of the above.

vertical supply curve parallel to Y-axis implies that the elasticity of supply is:

1. Zero.
2. Infinity.
3. Equal to one.
4. Greater than zero but less than infinity.

An indifference curve slopes down towards right since more of one commodity and less of another result in

1. Same satisfaction.
2. Greater satisfaction.
3. Maximum satisfaction.
4. Decreasing expenditure.

________ refers to a situation where all those who are able to work and are willing to work, are getting work.

1. Under employment.
2. Partial employment.
3. Full employment.
4. Voluntary employment.

_____ economics states 'what is' and not 'what should be’:

1. Positive.
2. Normative.
3. Modern.
4. None of these.

The money backed by order or authority of the government and do not have instrinsic value like gold and silver coins are called:

1. Legal tender money.
2. Credit money.
3. High powered money.
4. Fiduciary money.