Introduction of Micro-Economics — Economics STD 12 Humanities & Commerce — Question

What can be the maximum value of Marginal Propensity to Save?

1. 0
2. 1
3. 2
4. 3

The sum of output produced by all the units of labour alongwith other factors of productionrefers to:

1. Total Product (TP).
2. Average Product (AP).
3. Marginal Product (MP).
4. Both (a) and (b).

The goods which are ready to be used by the producers, are called ______.

1. Final goods.
2. Consumer goods.
3. Producer goods.
4. Both (a) and (c).

According to the law of returns to a factor, third stage of production begins when:

1. TP starts falling.
2. MP starts falling.
3. AP starts falling.
4. MP becomes equal to AP.

........ is the minimum rate at which Central Bank is prepared to give credit to the commercial banks:

1. Repo rate.
2. Reverse repo.
3. CRR.
4. SLR.

The average product curve in the input-output plane, will be __________ (Choose the correct alternative)

1. An ‘S’ shaped curve.
2. An inverse ‘S’ shaped curve.
3. A ‘U’ shaped curve.
4. An inverse ‘U’ shaped curve.

Due to increase in income of the consumer, the demand curve of normal goods will:

1. Move upwards.
2. Shift leftwards.
3. Shift rightwards.
4. Move downwards.

Budget is a:

1. Financial statement.
2. Monetary statement.
3. Political statement.
4. All of them.

In which market structure, price and output solution is indeterminate?

1. Oligopoly.
2. Monopolistic competition.
3. Perfect competition.
4. Monopoly.

Suppose the demand and supply curve of a Commodity-X is given by the following two equations simultaneously:
Qd = 200 - p
Qs = 50 + 2p

1. Find the equilibrium price and equilibrium quantity.
2. Suppose that the price of a factor of production producing the commodity has changed, resulting in the new supply curve given by the equation

Qs' = 80 + 2p
Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.