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

If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be.

1. Greater than 2.
2. Less than 2.
3. Equal to 2.
4. Equal to 5.

‘Homogenous products’ is a characteristic of:

1. Perfect competition only.
2. Perfect oligopoly only.
3. Both (a) and (b).
4. None of the above.

________ taxes do not depend on the level of income.

1. Direct
2. Indirect
3. Progressive
4. Lumpsum

Law of Diminishing Marginal Utility states that when more and more units of a commodity ate consumed, marginal utility:

1. begins to increase.
2. remains constant.
3. begins to decrease.
4. becomes zero.

Value of output is equal to:

1. Sales + Change in Stock.
2. Sales + Closing Stock.
3. Sales + Opening Stock.
4. Sales - Opening Stock.

The economy in which all important decisions are taken by the government is called -

The change in the total Product resulting from a change in a variable input is:

1. Average cost.
2. Averag product.
3. Marginal cost.
4. Marginal product.

What is ‘production' in economics?

1. Creation/ Addition to the value of output.
2. Production of foodgrains.
3. Creation of services.
4. Manufacturing of goods.

Assume that consumers' incomes and the number of sellers in the market for goods A both decrease. Based upon this information, we can conclude, with certainty, that the equilibrium _________.

1. price will increase.
2. price will decrease.
3. quantity will increase.
4. quantity will decrease.

Marginal cost is defined as:

1. The change in total cost due to a one unit change in output.
2. Total cost divided by output.
3. The change in output due to a one unit change in an input.
4. Total product divided by the quantity of input.