Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

If the average cost is falling:

1. Marginal cost is rising.
2. Marginal cost is falling.
3. Marginal cost is equal to average cost.
4. It is impossible to tell if marginal cost is rising or falling.

Which part of government budget shows the current receipts?

1. Capital budget.
2. Revenue budget, as they are recurring in nature.
3. Both (a) and (b).
4. Neither (a) nor (b).

Ed > 1 represents:

1. Elastic demand.
2. Inelastic demand.
3. Unitary elastic demand.
4. None of these.

In case of currency appreciation, the domestic currency becomes _______.

1. less valuable.
2. more valuable.
3. rise.
4. fall.

In which form of the market structure is the degree of control over the price of its product by a firm very large?

1. Monopoly.
2. Imperfect Competition.
3. Oligopoly.
4. Perfect competition.

When marginal utility is zero, total utility is:

1. Zero.
2. Minimum.
3. Maximum.
4. Negative.

Production possibility curve (PPC) is defined as different combination of goods and services that can be produced by whom when the resources are fully employed?

1. Firm
2. Industry
3. Economy
4. All of the above

What will be the effect on exports if foreign exchange rate increases?

1. Increases.
2. Decreases.
3. Remains constant.
4. None of them.

Identify the item which is not a factor payment:

1. Free uniforms to defense personnel.
2. Salaries to the members of Parliament.
3. Imputed rent of an owner occupied a building.
4. Scholarships given to the students of scheduled caste.

Which function of foreign exchange market protects against the foreign exchange risk?

1. Credit function.
2. Hedging function.
3. Transfer function.
4. All of them.