Market Equilibrium — Economics STD 12 Humanities & Commerce — Question

The slope of the budget line is -

Economics is:

1. The study of stocks and bond market.
2. Mainly the study of business firms.
3. The problem of choice under scarcity.
4. The study of management decisions.

When the Average Product (AP) is maximum, the Marginal Product (MP) is:

1. Equal to AP.
2. Less than AP.
3. More than AP.
4. Can be any one of the above.

In which time period, all factors of production become variable and factors of production change with the change in level of production?

1. Long period.
2. Market period.
3. Short period.
4. All of these.

Hint: Long period is a time period when producer changes both fixed and variable factors of production to change the level of production. There is no difference between fixed and variable factors in the long run.

There is inverse relation between price and demand for the product of a firm under: (choose the correct alternative)

1. Monopoly only.
2. Monopolistic competition only.
3. Both under monopoly and monopolistic competition.
4. Perfect competition only.

Which items in Balance of Payments are also called 'above the line' items?

1. Autonomous items.
2. Accommodating items.
3. Visible items.
4. Invisible items.

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 two goods are complementary then rise in the price of one results in:

1. Rise in demand for the other.
2. Fall in demand for the other.
3. Rise in demand for both.
4. None of these.

Which one of the following statements is an example of “explicit cost"?

1. The wages a proprietor could have made by working as an employee of a large firm.
2. The income that could have been earned in alternative uses by the resources owned by the firm.
3. The payment of wages by the firm.
4. The normal profit earned by a firm.