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

In order to encourage investment in the country, the RBI may_______.

1. reduce CRR.
2. increase CRR.
3. sell securities in the open market.
4. increase bank rate.

The part of LRR kept by the banks themselves is called:

1. SLR.
2. CRR.
3. Reverse Repo Rate.
4. None of the above.

Average revenue and price are always equal under:

1. Perfect Competition only.
2. Monopolistic Competition only.
3. Monopoly only.
4. All market forms.

In a situation of 'Deficient demand' at the full employment level of income:

1. AD = AS
2. AD < AS
3. AD > AS
4. None of these.

The individuals or institutions which take decisions regarding consumption, production, budget, taxation, policy, etc are known as:

1. Producers.
2. Consumers.
3. Government.
4. All of these.

Consider the following supply schedule.

S. No.	Price (₹ per unit)	Quantity Supplied (in units)
i.	25	50
ii.	35	70

This refers to:

1. Expansion in supply.
2. Contraction in supply.
3. Increase in supply.
4. Both (b) and (c).

Hint: Supply of a commodity expand only due to increase in price of the commodity and other factors remain constant. Quantity supplied increases from 50 units to 70 units of the commodity as a result of increase in its price from ₹ 25 to ₹ 35.

A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is:

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

Identify the law in the statement below:
'A consumer with a given income allocates his expenditure among commodities, so that last rupee spent on each brings equal Marginal Utility':

1. Law of Diminishing Marginal Utility.
2. Law of Equi-marginal Utility.
3. Law of diminishing MRS.
4. None of the above.

Which of the following is a Macroeconomic study?

1. Government budget and economy.
2. Price determination of a commodity.
3. Producer's equilibrium.
4. Consumer's equilibrium.