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

The absolute value of the coefficient of price elasticity of demand ranges from:

1. Zero to infinity.
2. Minus infinity to plus infinity.
3. One to minus infinity.
4. One to infinity.

If the government's expenditure is more than the government's revenue, then it is called -

Equilibrium price may be determined through _______.

1. only demand.
2. only supply.
3. both demand and supply.
4. none of the above.

A price ceiling is:

1. A minimum price that a firm may charge for a good or service.
2. Usually established by the manufacturer of a product.
3. The maximum price that a firm may charge for a good or service.
4. None of the above.

Macro economics deals with:

1. Theory of distribution
2. Theory of income and employment
3. Theory of economic growth
4. All of the above

Giffen good is:

1. An inferior good.
2. One with high negative income elasticity of demand.
3. Consumed by low-paid workers.
4. All of the above.

Government provides various goods like roads, parks, street light and defence services etc to general public through budgetary provisions. These goods are called ________.

1. budgetary goods.
2. government goods.
3. public goods.
4. private goods.

Reduction in the value of domestic currency through market forces is called ________.

1. depreciation.
2. devaluation.
3. revaluation.
4. appreciation.

Price elasticity of demand on a linear demand curve at the y-axis is equal to:

1. Zero.
2. One.
3. Infinity.
4. 0 < Ed < 1.

In the short run, when the output of a firm increases, its average fixed cost:

1. Increases.
2. Decreases.
3. Remains constant.
4. First declines and then rises.