Production and cost — Economics STD 12 Humanities & Commerce — Question

The law of scarcity.

1. Does not apply to rich, developed countries.
2. Applies only to the less developed countries.
3. 'Implies that consumers' wants will Gebe satisfied in a socialistic system.
4. 'Implies that consumers' wants will never be completely satisfied.

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.

Which variables are defined as any quantity measured at a particular point of time?

1. Stock.
2. Flow.
3. Investment.
4. Inventory.

Firm in a monopolistic market has _________ control over price.

1. no.
2. full.
3. partial.
4. none of these.

Macroeconomics is also called ______ economics.

1. Experimental.
2. Applied.
3. Aggregated.
4. Individual.

When both demand and supply decreases in the same proportion, then equilibrium price will:

1. Remain the same.
2. Rise.
3. Fall.
4. None of the above.

Which of the following is an assumption of Production Possibility Frontier?

1. Resources are not fully employed.
2. Resources are not equally efficient for production of the two goods.
3. Resources are not efficiently employed.
4. Resources available are not fixed.

As the consumer has more units of a commodity, his total utility from the commodity:

1. Increases less than in proportion, reaches a maximum and then falls.
2. Increases less than in proportion and then falls.
3. Increases more than in proportion and then reaches a maximum.
4. Falls, becomes zero and then negative.

Suppose that a sole proprietorship is earning total revenues of ₹ 1,00,000 and is incurring explicit costs of ₹ 75,000. If the owner could work for another company for ₹ 30,000 a year, we would conclude that ______________.

1. The firm is incurring an economic loss.
2. Implicit costs are ₹ 25,000.
3. The total economic costs are ₹ 1,00,000.
4. The individual is earning an economic profit of ₹ 25,000.

Which of the following statement is true?

1. For a monopoly firm, Average Revenue can be zero.
2. For a monopoly firm, Marginal Revenue can be zero or negative.
3. For a monopoly firm, Marginal Revenue and Average Revenue are identical.
4. For a monopoly firm, Marginal Revenue and Average Revenue are positively sloped.