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

If demand is parallel to X-axis, what will be the nature of elasticity?

1. Perfectly elastic.
2. Inelastic.
3. Elastic.
4. Highly elastic.

Subsidies are an example of:

1. Revenue Expenditure.
2. Capital Expenditure.
3. Plan Expenditure.
4. None of them.

If the investment multiplier is 1, what will be the value of Marginal Propensity to Consume?

1. 2
2. 4
3. 1
4. 0

Monopolist can determine _________.

1. price.
2. output.
3. both (a) and (b).
4. none of these.

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.

The _______ distance between TVC and TC is ________.

1. Vertical, TFC.
2. Horizontal, TFC.
3. Horizontal, AFC.
4. Vertical, AFC.

Market which has two firms is known as:

1. Duopoly.
2. Monopolistic Competition.
3. Oligopoly.
4. None of These.

________ taxes do not depend on the level of income.

1. Direct
2. Indirect
3. Progressive
4. Lumpsum

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.

Consuming two goods, consumer attains equilibrium when:

1. MU1 > MU2
2. MU2> MU1
3. MU1 = MU2
4. TU1 = TU2