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

Credit creation by commercial banks is determined by:

1. Cash Reserve Ratio (CRR).
2. Statutory Liquidity Ratio (SLR).
3. Initial Deposits.
4. All the above.

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.

When AR is constant AR is equal to _________:

1. MR.
2. TR.
3. AC.
4. MC.

Production possibility curve shifts rightward due to:

1. Growth of resources.
2. Improvement in technology.
3. Overtime work.
4. Both (a) and (b).

Suppose that a sole proprietorship is earning total revenues of ₹ 1,00,000 and is incurring explicit costs of ₹ 75,000. If the owner could work for another company for ₹ 30,000 a year, we would conclude that ______________.

1. The firm is incurring an economic loss.
2. Implicit costs are ₹ 25,000.
3. The total economic costs are ₹ 1,00,000.
4. The individual is earning an economic profit of ₹ 25,000.

Imperfect competition is a type of market structure showing some but not all feature of competitive market. Which of the following is/ are imperfect competition?

1. Perfect competition.
2. Monopolistic competition.
3. Oligopoly.
4. Both (a) and (b).

Who is the father of economics?

1. Karl Marx.
2. J.M. Keynes.
3. Adam Smith.
4. Alfred Marshall.

Average 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.

What is the impact of deficient demand on production and employment?

1. Increase.
2. Decrease.
3. Remains constant.
4. None of them.

A firm's average fixed cost is Rs.20 at 6 units of output. What will it be at 4 units of output?

1. Rs.60
2. Rs.30
3. Rs.40
4. Rs.20