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

The various monetary policy measures that can decrease aggregate demand, and thus, control the problem of excess demand are:

1. Increase in the bank rate.
2. Sale of government securities in the open market by the central bank.
3. Raising CRR and SLR.
4. All of them.

______ is the difference between total receipts and total expenditure.

1. Fiscal deficit.
2. Budget deficit.
3. Revenue deficit.
4. Capital deficit.

Stage II of Law of Variable Proportions is called:

1. Diminishing returns.
2. Decreasing returns.
3. Falling returns.
4. Negative returns.

What is the time period of the Great Depression?

1. From 1921 to 1925
2. From 1941 to 1951
3. From 1929 to 1933
4. None of these.

........ is the minimum rate at which Central Bank is prepared to give credit to the commercial banks:

1. Repo rate.
2. Reverse repo.
3. CRR.
4. SLR.

In general, habit of consumer makes the demand:

1. Less elastic.
2. More inelastic.
3. Elastic.
4. None of these.

Equilibrium output, income and employment can be determined at economic equilibrium point when (Where, Y = National Income, C = Consumption, S = Savings, I = Investment)

1. Y = C
2. AS = AD
3. S = 1
4. Both (b) and (c)

If Marginal Rate of Substitution is increasing throughout, the Indifference curve will be:

1. Downward sloping convex.
2. Downward sloping concave.
3. Downward sloping straight line.
4. Upward sloping convex.

The supply of a good refers to:

1. Actual production of the good.
2. Total existing stock of the good.
3. Stock available for sale.
4. Amount of the good offered for sale at a particular price per unit of time.