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

Which of the following are studied in Macroeconomics?

1. National income.
2. Price determination of a commodity.
3. Behavior of firms.
4. Activities of individual units.

If Marginal Rate of Substitution is constant throughout, the Indifference curve will be:

1. Parallel to the x-axis.
2. Downward sloping concave.
3. Downward sloping convex.
4. Downward sloping straight line.

The second glass of lemonade gives lesser satisfaction to a thirsty boy. This is a clear case of

1. Law of demand.
2. Law of diminishing returns.
3. Law of diminishing utility.
4. Law of supply.

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.

Identify the law in the statement below:
'A consumer with a given income allocates his expenditure among commodities, so that last rupee spent on each brings equal Marginal Utility':

1. Law of Diminishing Marginal Utility.
2. Law of Equi-marginal Utility.
3. Law of diminishing MRS.
4. None of the above.

A consumer consumes only two goods. If price of one of the goods falls, the indifference curve:

1. Shifts upwards.
2. Shifts downwards.
3. Can shift both upwards or downwards.
4. Does not shift.

Microeconomics studies -

There are only a few sellers under.

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

The main cause(s) of deficit demand is/ are:

1. Decrease in money supply.
2. Increase in public expenditure.
3. Decrease in investment demand.
4. Both (a) and (c).

Income method of measuring national income includes:

1. All factor income.
2. All transfer income.
3. All transfer payment.
4. (d) Both (a) and (b)