Market Equilibrium — Economics STD 12 Humanities & Commerce — Question

When supply is perfectly inelastic, Elasticity of Supply is equal to:

1. -1
2. Zero.
3. 1
4. Infinity.

How many costs exist in the short-run?

1. 1.
2. 3.
3. 2.
4. 7.

In a circular flow of income, ______ acts as intermediate between household and firms to facilitate savings and borrowings.

1. Financial market.
2. Goods market.
3. Gold market.
4. All of these.

When TP is maximum, MP is:

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

Which of the following GDP (Gross Domestic Product) helps to achieve a sustainable use of natural resources and equitable distribution of National income?

1. Real GDP
2. Current GDP
3. Green GDP
4. Nominal GDP

When both demand and supply increases in the same proportion then equilibrium price will:

1. Remain the same.
2. Rise.
3. Fall.
4. None of the above.

Which of the following are studied in Macroeconomics?

1. National income.
2. Price determination of a commodity.
3. Behavior of firms.
4. Activities of individual units.

Total cost at zero level of output will be = ________?

1. TFC.
2. TVC.
3. AC.
4. AFC.

____________ are not zero at zero level of output.

1. Fixed costs.
2. Variable costs.
3. Marginal costs.
4. Average variable costs.

Hint: Fixed cost cannot be avoided even if output is zero, e.g. rent of factory, salaries of permanent employees, municipal tax, etc.

The difference between average total cost and average variable cost:

1. Is constant.
2. Is total fixed cost.
3. Gets narrow as output decreases.
4. Is the average fixed cost.