The theory of the firm under perfect competition — Economics STD 12 Humanities & Commerce — Question

At the Break-Even point, Savings in the economy are:

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

There are many wheat farms, each of whom produces the same product. The wheat market can best be classified as:

1. Monopolistic competition.
2. Perfect competition.
3. Oligopoly.
4. Monopoly.

In GNP calculation, which of the following should be excluded?

1. Rental incomes.
2. Interest payments.
3. Dividends.
4. Government transfer payment.

Assumption of PPC is/ are:

1. There are only two good
2. Resources are not specific
3. Resources are fully employed
4. All of the above

A firm is not a price maker under.​​​​​​

1. Oligopoly.
2. Monopolistic competition.
3. Monopoly.
4. Perfect competition.

Given the fact that MRS between goods X and Y is diminishing, IC is:

1. Convex to the origin.
2. Concave to the origin.
3. Straight line.
4. None of these.

If the percentage change in supply is less than the percentage change in price, it is called _______.

1. Unit elasticity of supply.
2. Less elastic supply.
3. More elastic supply.
4. Inelastic supply.

Demand for intermediate consumption arises in _______.

1. consumer households.
2. government enterprises only.
3. corporate enterprises only.
4. all producing sectors of an economy.

When supply of a commodity does not change, irrespective of any change in its price, it refers to:

1. Unit elastic supply.
2. Perfectly elastic supply.
3. Perfectly inelastic supply.
4. Less than unit elastic supply.

In which time period, all factors of production become variable and factors of production change with the change in level of production?

1. Long period.
2. Market period.
3. Short period.
4. All of these.

Hint: Long period is a time period when producer changes both fixed and variable factors of production to change the level of production. There is no difference between fixed and variable factors in the long run.