Production and cost — Economics STD 12 Humanities & Commerce — Question

Entry is restricted under:

1. Perfect competition.
2. Monopoly.
3. Monopolistic competition.
4. All of the above.

Consumption of fixed capital refers to fall in the value of fixed assets

1. Due to normal wear and tear.
2. Due to abnormal wear and tear.
3. Due to foreseen obsolescence.
4. Due to normal wear and tear and foreseen obsolescence.

Which among the following cost do not change when the output changes in the short run?

1. Average variable cost.
2. Total variable cost.
3. Average fixed cost.
4. Total fixed cost.

Building, plant and machinery are capital goods. In the light of this statement, following are the characteristics of capital goods excluding:

1. They are of high value.
2. They are the assets of the company.
3. They are used for less than one year.
4. They are used in production process.

With a rise in real national income, welfare of the people:

1. Rises.
2. Falls.
3. Remains unchanged.
4. None of the above.

What causes rightward shift in the demand curve?

1. Fall in the price of the good.
2. Fall in the price of substitute good.
3. Fall in the price of complementary good.
4. Both (b) and (c).

Law of demand must fall in case of:

1. Normal goods.
2. Giffen goods.
3. Inferior goods.
4. None of these.

Economic problem arises because:

1. Wants are unlimited
2. Resources are scarce
3. Alternative uses of resources exist
4. All of the above

The effect of increase in CRR will be reduced or nullified if_______.

1. bank rate is reduced.
2. securities are sold in the open market.
3. SLR is increased.
4. people do not borrow from non banking institutions.

Loans granted to State Governments is an example of ________.

1. revenue receipts.
2. capital receipts.
3. revenue expenditure.
4. capital expenditure.