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

Repo rate is the rate at which:

1. Commercial banks purchase government securities from the central bank.
2. Commercial banks can take loans from the central bank.
3. Commercial banks can keep their deposits with the central bank.
4. Short-term loans are given by commercial banks.

Which of the following can be referred to as ‘point of satiety'?

1. Marginal Utility is negative.
2. Marginal utility is zero.
3. Total Utility is rising.
4. Total Utility is falling.

If the Average Product (AP) of a labour is 30 units of outputs, then find total product of 2 labours.

1. 10 units of output.
2. 15 units of output.
3. 30 units of output.
4. 60 units of output.

Hint: Total Product (TP) is the sum total of output produced by all units of labour.
TP = AP XL where, AP = Average Product
TP = 30 x 2 = 60 units L = Number of Labour

An economy in which all economic activities are organised through the market is called:

1. Mixed economy.
2. Market economy.
3. Centrally planned economy.
4. None of these

Per unit production of the variable factor is called:

1. Total product.
2. Average product.
3. Marginal product.
4. None of these.

PPC is defined as different combination of goods and services that can be produced by whom, when the resources are fully employed?

1. Firm.
2. Industry.
3. Economy.
4. All of these.

National income is the sum of factor incomes accruing to: (Choose the correct alternative)

1. Nationals.
2. Economic territory.
3. Residents.
4. Both residents and non-residents.

What will be the condition of total utility when marginal utility stays positive?

1. Maximum.
2. Diminishing.
3. Increasing.
4. Minimum.

Contraction of supply is the result of:

1. Decrease in the number of producers.
2. Decrease in the price of the goods concern.
3. Increase in the prices of other goods.
4. Decrease in the outlay of sellers.