Introduction of Micro-Economics — Economics STD 12 Humanities & Commerce — Question

Payment made to outsiders for their goods and services are called ________________.

1. Opportunity cost.
2. Real cost.
3. Explicit cost.
4. Implicit cost.

Factor which affects market demand but not individual demand can be:

1. Number of consumers in the market.
2. Age and sex composition of population.
3. Distribution of income.
4. All of the above.

When there is increase in demand and decrease in supply, equilibrium price:

1. Falls.
2. Rises.
3. Constant.
4. None of these.

A government shows a primary deficit of 34400 crore. The revenue expenditure on interest payment is 400 crore. How much is the fiscal deficit?

1. 4000 crore.
2. 4800 crore.
3. 4400 crore.
4. 400 crore.

An increase in demand with unchanged supply leads to _______.

1. rise in equilibrium price and fall in equilibrium quantity.
2. fall in both equilibrium price and quantity.
3. rise in both equilibrium price and quantity.
4. fall in equilibrium price and rise in equilibrium quantity.

Average revenue is defined as:

1. Revenue per unit of commodity.
2. Addition to revenue when one more unit of the commodity is sold.
3. Proceeds from the sale of the commodity.
4. All of the above.

The consumer is in equilibrium at a point where the budget line

1. Is above an indifference curve.
2. Is below an indifference curve.
3. Is tangent to an indifference curve.
4. Cuts an indifference curve.

________ cost is zero at zero level of production and change with the change in level of output.

1. Fixed.
2. Variable.
3. Implicit.
4. All of these.

Contraction of supply curve means:

1. Upward movement along the supply curve.
2. Downward movement along the supply curve.
3. Rightward shift in supply curve.
4. Leftward shift in supply curve.

Slope of production curve is:

1. a straight line.
2. convex to the point of origin ‘O’.
3. concave to the point of ‘O’.
4. none of these.