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

Due to change in price, if there is more than proportionate change in quantity supplied of a good, the supply is considered to be:

1. Perfectly elastic.
2. Relatively inelastic.
3. Relatively elastic.
4. Perfectly inelastic.

When AR is constant AR is equal to _________:

1. MR.
2. TR.
3. AC.
4. MC.

Consuming two goods, consumer attains equilibrium when:

1. MU1 > MU2
2. MU2> MU1
3. MU1 = MU2
4. TU1 = TU2

Any statement about demand for a good is considered complete only when the following is/are mentioned in it.

1. Price of the good.
2. Quantity of the good.
3. Period of time.
4. All of the above.

A lot of people die and many factories are destroyed due to floods in a country. How will it affect the production possibility curve?

1. PPC will shift towards right
2. PPC will shift towards left.
3. PPC will remain the same
4. None of the above.

When the total fixed cost of producing 100 units is ₹ 30 and the average variable cost is ₹ 3, total cost is: (Choose the correct alternative)

1. ₹ 3
2. ₹ 30
3. ₹ 270
4. ₹ 330

A seller cannot influence the market price under:

1. Perfect competition.
2. Monopoly.
3. Monopolistic competition.
4. All of the above.

The problem of 'what to produce' relates to:

1. The choice of technique.
2. Distribution of income.
3. Market value of the goods and services.
4. The choice of goods and services.

______ capital formation leads to lower rate of GDP growth.

1. Lower.
2. Constant.
3. Higher.
4. None of these.

If PPC shifts to the left, it means:

1. Resources are destroyed
2. More unemployment
3. Use of outdated technology
4. All of the above