The theory of the firm under perfect competition — Economics STD 12 Humanities & Commerce — Question

In economics, scarcity refers to a situation when:

1. Demand for goods exceeds its supply.
2. Supply of goods exceeds its demand.
3. Supply of goods is equal to its demand.
4. Both (a) and (b).

The demand curve of a monopoly firm will be __________.

1. upward sloping.
2. downward sloping.
3. horizontal.
4. vertical.

What is the value of elasticity of demand on rectangular hyperbola demand curve?

1. Infinity.
2. Unity.
3. Zero s.
4. Ed>1.

vertical supply curve parallel to Y-axis implies that the elasticity of supply is:

1. Zero.
2. Infinity.
3. Equal to one.
4. Greater than zero but less than infinity.

When supply of a commodity does not change, irrespective of any change in its price, it refers to:

1. Unit elastic supply.
2. Perfectly elastic supply.
3. Perfectly inelastic supply.
4. Less than unit elastic supply.

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.

The points outside the budget line of two goods (X and Y) are:

1. Unavailable points.
2. Unattainable points.
3. Attainable points.
4. All of these.

Suppose total revenue is rising at a constant rate as more and more units of a commodity are sold, marginal revenue would be:

1. Greater than average revenue.
2. Equal to average revenue.
3. Less than average revenue.
4. Rising.

The graphic presentation of a table showing price and demand relationship for a commodity in the market is called:

1. Individual demand curve.
2. Producer’s demand curve.
3. Market demand curve.
4. Consumer’s demand curve.

_____________ is the variable factor of production.

1. Land.
2. Labour.
3. Capital.
4. Factory.

Hint: The factors which changes with the change in output are called 'variable factors of production'. e.g. fuel, power, labour, raw material, etc.