MICROECONOMICS CH : 2 CENTRAL PROBLEMS OF AN ECONOMY — Economics STD 11 Commerce — Question

National Income is studied under Macroeconomics. (True/ False)

Marginal revenue refers to the price of the last unit of a commodity.

Following a cut in the level of output, the difference between average total cost and average variable cost decreases.

Giving reasons, state whether the following statements are true or false.
In perfect competition, selling costs can help in raising sale of the product.

Under perfect competition, price is determined by equilibrium of demand and supply. (True/ False)

If a straight line upward sloping supply curve shoots from the Y-axis, elasticity of supply < 1.

Giving reasons, state whether the following statements are true or false.
When the quantity of a variable input is increased from 3 units to 4 units, the total output increases from 70 units to 85 units. The marginal product of the variable input is 15 units.

Increase in income of the consumer is the only cause that leads to a parallel shift of budget line to the right.

Giving reasons, state whether the following statements are true or false.
If Indian Airlines reduce fares from Delhi to Mumbai, demand curve for air travel shifts rightward.