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

Theory of distribution studies the problem of:

1. What goods to produce and how much to produce
2. How to produce
3. For whom to produce
4. All of the above

            is the main source of money supply is an economy.

1. Central bank
2. Commercial banks
3. Both (a) and (b)
4. Government

Consumer's equilibrium through indifference curve analysis is based on:

1. Cardinal utility approach.
2. Ordinal utility approach.
3. Money utility approach.
4. Both (a) and (b).

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.

Arrange the different forms of money in the order of their liquidity:

1. Cheque.
2. Cash.
3. Debit card.
4. Equity shares.
5. Bonds.

Codes:

1. 2 4 3 1 5
2. 2 1 3 4 5
3. 2 3 1 4 5
4. 2 1 4 3 5

Suppose total revenue is rising at a constant rate as more and more units of a commodity are sold, marginal revenue would be: (choose the correct alternative)

1. Greater than average revenue.
2. Equal to average revenue.
3. Less than average revenue.
4. Rising.

Which of the following clearly represents a movement toward greater productive efficiency?

1. A movement from point A to point B.
2. A movement from point C to point D.
3. A movement from point F to point C.
4. A movement from point E to point B.

The average product of labour is maximized when marginal product of labour:

1. Equals the average product of labour.
2. Equals zero.
3. Is maximized.
4. None of these.

Differentiated products is a characteristic of: (Choose the correct alternative)

1. Monopolistic competition only.
2. Oligopoly only.
3. Both monopolistic competition and oligopoly.
4. Monopoly.