Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question

Marginal Revenue is equal to:

1. The change in price divided by the change in output.
2. The change in quantity divided by the change in price.
3. The change in P Q due to a one unit change in output.
4. Price, but only if the firm is a price searcher.

Which out of the following is not included in estimation of NI?

1. Subsidised Lunch.
2. Old-age Pension.
3. Free Medical facilities served in office to employees.
4. Construction of a house.

In case of Giffen goods, the demand curve will be:

1. Horizontal
2. Downward-sloping to the right.
3. Vertical.
4. Upward-sloping to the right.

Total 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.

A firm break-even point occurs when _______ At this point, firm is earning zero economic profit or normal profits. The market price passes through the minimum point of AC curve.

1. AR = AC
2. TR = TC
3. AR = AVC
4. Both (a) and (b)

When marginal utility is negative, total utility is:

1. Zero.
2. Diminishing.
3. Maximum.
4. Minimum.

When more and more units of a variable factor are combined with the fixed factor, the resulting law is called:

1. Law of variable proportions.
2. Law of increasing Returns to Scale.
3. Law of Decreasing Return to Scale.
4. Law of Constant Return Scale.

In a government budget, revenue deficit is 50,000 crore and borrowings are ₹ 75,000 crore. How much is the fiscal deficit?

1. 50000 crore.
2. 75000 crore.
3. 25000 crore.
4. 25000 crore.

Repayment of Loans is an example of:

1. Capital Expenditure.
2. Non-Plan Expenditure.
3. Revenue Expenditure.
4. Plan Expenditure.