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

A government shows a primary deficit of 10,000 crore. The revenue expenditure on interest payment is 8000 crore. How much is the fiscal deficit?

1. 8000 crore.
2. 18000 crore.
3. 1000 crore.
4. 8000 crore.

Monopolist can determine _________.

1. price.
2. output.
3. both (a) and (b).
4. none of these.

If MPC = 1, the value of multiplier is: (Choose the correct alternative)

1. 0
2. 1
3. Between 0 and 1
4. Infinity.

While financing a deficit, under which measure government can print more currency:

1. Deficit financing.
2. Disinvestment.
3. By issuing bonds.
4. None of them.

Which of the following cost decreases continuously with increase in production?

1. Total Variable Cost.
2. Marginal Cost.
3. Average Total Cost.
4. Average Fixed Cost.

When supply decreases and there is no change in demand, then equilibrium price __________ and quantity __________.

1. Falls, rises.
2. Rises, falls.
3. Rises, rises.
4. Falls, falls.

Suppose that the supply of cameras increases due to an increase in imports. Which of the following statements will most likely occur?

1. The equilibrium price of cameras will increase.
2. The equilibrium quantity of cameras exchanged will decrease.
3. The equilibrium price of camera film will decrease.
4. The equilibrium quantity of camera film exchanged will increase.

In the short run, when a firm produces zero output, its total cost is equal to:

1. Zero.
2. Variable cost.
3. Fixed cost.
4. Marginal cost.

When income of the consumer falls the impact on price-demand curve of an inferior good is: (choose the correct alternative)

1. Shifts to the right.
2. Shifts to the left.
3. There is upward movement along the curve.
4. There is downward movement along the curve.