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

As a result of rise in consumer’s income , demand curve for coarse grain (inferior good):

1. Shifts to the left.
2. Shifts to the right.
3. Becomes a horizontal straight line.
4. Becomes a vertical straight line.

The difference between value of output and value added is ......

1. Depreciation.
2. Intermediate consumption.
3. Net Indirect Taxes.
4. NFIA.

When TP is falling, then MP is:

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

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 one of the following is not the feature of socialist economy?

1. Social welfare.
2. Freedom of enterprise.
3. Public ownership.
4. Planning mechanism.

Credit creation by commercial banks is determined by:

1. Cash Reserve Ratio (CRR).
2. Statutory Liquidity Ratio (SLR).
3. Initial Deposits.
4. All the above.

As we move along a downward sloping straight line demand curve from left to right, price elasticity of demand: (Choose the correct alternative)

1. Remains unchanged.
2. Goes on falling.
3. Goes on rising.
4. Falls initially then rises.

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.

If the average cost is falling:

1. Marginal cost is rising.
2. Marginal cost is falling.
3. Marginal cost is equal to average cost.
4. It is impossible to tell if marginal cost is rising or falling.

Giffen paradox is an exception of _______:

1. Law of Demand.
2. Law of Supply.
3. Law of Production.
4. Law of Utility.