Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question

In case of inferior goods like bajra, a fall in its price tends to _______:

1. Make the demand remain constant.
2. Reduce the demand.
3. Increase the demand.
4. Change the demand in an abnormal way.

When does a situation of deficient demand arise in an economy?

1. AD > AS
2. S > l
3. AD < AS
4. S < l

During depression, it is advisable to:

1. Lower bank rate and purchase securities in the market.
2. Increase bank rate and purchase securities in the open market.
3. Decrease bank rate and sell securities in the open market.
4. Increase bank rate and sell securities in the open market.

Hitesh buys pizza and coke. The marginal utility of last piece of pizza is 80 utils and of last sip of coke is 40 utils. The price of pizza is ₹ 40 and that of coke is ₹ 20. This means that Hitesh is buying:

1. More pizza and less coke.
2. More coke and less pizza.
3. both at optimal level.
4. Same quantity of both.

If the marginal (additional) opportunity cost is a constant, PPC would be:

1. Convex.
2. A straight line.
3. Backward bending.
4. Concave.

In general, habit of consumer makes the demand:

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

Under barter exchange system, barter economy is termed as:

1. C-C economy.
2. C-M economy.
3. C-G economy.
4. Cash less economy.

________ increases the liability of the government.

1. Capital receipts
2. Capital expenditure
3. evenue receipts
4. Revenue expenditure

There is a range when AC is falling and __________.

1. MC is rising.
2. TC is rising.
3. AVC is constant.
4. None of the above.

Function showing relationship between input and output is known as ____________.

1. Consumption function.
2. Investment function.
3. Production function.
4. Cost function.