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

Which of the following is not the feature of an imperfect competition?

1. Large number of buyers.
2. Single seller.
3. Homogeneous products.
4. Price maker.

Breakeven point means:

1. AR = AC.
2. TR = TC.
3. No profit, no loss.
4. All of the above.

Interest payments are subtracted from which deficit to arrive at Primary Deficit:

1. Revenue Deficit.
2. Capital Deficit.
3. Fiscal Deficit.
4. None of these.

Which refers to a set of combinations of two goods that offers same level of satisfaction to a consumer?

1. Budget line.
2. Indifference set.
3. Budget set.
4. Indifference map.

Consider the following production possibility schedule.

Goods A	0	1	2	3	4
Goods B	50	45	40	35	30

What would be the shape of production possibility curve?

1. Convex.
2. Concave.
3. Straight line.
4. None of these.

A production function states that there exists a technical relationship between:

1. Input prices and output prices.
2. Input prices and quantity of output.
3. The quantity of inputs and the quantity of output.
4. The quantity of inputs and input prices.

A Market structure which produces heterogeneous products is called:

1. Monopoly.
2. Monopolistic competition.
3. Perfect competition.
4. None of the above.

Contraction of demand is the result of:

1. Decrease in the number of consumers.
2. Increase in the price of goods concerned.
3. Increase in the prices of other goods.
4. Decrease in the income of purchasers.

As the consumer has more units of a commodity, his total utility from the commodity:

1. Increases less than in proportion, reaches a maximum and then falls.
2. Increases less than in proportion and then falls.
3. Increases more than in proportion and then reaches a maximum.
4. Falls, becomes zero and then negative.

Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely: (Choose the correct alternative)

1. To rise.
2. To fall.
3. To rise or to fall.
4. To remain unaffected.