Production and cost — Economics STD 12 Humanities & Commerce — Question

Average revenue and price are always equal under:

1. Perfect competition only.
2. Monopolistic competition only.
3. Monopoly only.
4. All market forms.

Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are called: (Choose the correct alternative)

1. Current transactions.
2. Capital transactions.
3. Autonomous transactions.
4. Accommodating transactions.

There is _______ relationship between MPS and investment multiplier.

1. positive.
2. inverse.
3. direct.
4. None of these.

When MR is zero, TR is _________:

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

The shape of supply curve is _____________ in case of normal goods.

1. Positively sloped.
2. Negatively sloped.
3. Parallel to Y-axis.
4. Parallel to X-axis.

PPC is also called:

1. Opportunity cost curve
2. Transformation curve
3. Production possibility frontier
4. All of the above

Perfect competition is a form of market in which there are:

1. A few firms producing identical goods.
2. Many firms producing differentiated goods.
3. A few firms producing goods that differ somewhat in quality.
4. Many firms producing identical good.

Total utility is maximum when:

1. Marginal utility is zero.
2. Marginal utility is at its highest point.
3. Marginal utility is equal to average utility.
4. Average utility is maximum.

Identify the law in the statement below:
'A consumer with a given income allocates his expenditure among commodities, so that last rupee spent on each brings equal Marginal Utility':

1. Law of Diminishing Marginal Utility.
2. Law of Equi-marginal Utility.
3. Law of diminishing MRS.
4. None of the above.

In case of Giffen’s Paradox the slope of demand curve is:

1. Negative.
2. Positive.
3. Parallel to X-axis.
4. Parallel to Y-axis.