Market Equilibrium — Economics STD 12 Humanities & Commerce — Question

As we move along a downward sloping straight line demand curve from left to right, price elasticity of demand: (Choose the correct alternative)

1. Remains unchanged.
2. Goes on falling.
3. Goes on rising.
4. Falls initially then rises.

Perfect competition is a form of market in which there are:

1. A few firms producing identical goods.
2. Many firms producing differentiated goods.
3. A few firms producing goods that differ somewhat in quality.
4. Many firms producing identical good.

Goods purchased for satisfaction of wants are:

1. Capital goods.
2. Final goods.
3. Consumption goods.
4. Intermediate goods.

In case of single commodity, a consumer is at equilibrium point, marginal utility derived from consumption of commodities is 12, find the price of that commodity? (when m = 1)

1. ₹ 1
2. ₹ 2
3. ₹ 12
4. ₹ 10

Which out of the following items is not included in money supply of a country?

1. Time deposits.
2. Coins and Currency.
3. Demand deposits.
4. None.

If PPC shifts to the left, it means:

1. Resources are destroyed
2. More unemployment
3. Use of outdated technology
4. All of the above

Market demand curve for soup is given and known to us. With the onset of cold weather, price remaining the same the consumer would:

1. Move to a higher demand curve.
2. Move downward along same demand curve.
3. Move to a lower demand curve.
4. Move upward along the same demand curve.

What is the relation between price and marginal cost at equilibrium, when price falls with the rise in output.

1. Price = Marginal Cost.
2. Price > Marginal Cost.
3. Price < Marginal cost.
4. None of these.

The supply of foreign exchange comes from ________.

1. the foreigners purchasing home country's goods and services through exports.
2. the foreigners who invest in home country through joint ventures or through financial market operations.
3. currency dealers and speculators.
4. all of them.

Increase in the value of domestic currency by the government is called _______.

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