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

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 related to microeconomics?

1. Inflation in the economy.
2. Problem of unemployment.
3. National Income.
4. Income from the railways.

If the percentage change in supply is less than the percentage change in price, it is called _______.

1. Unit elasticity of supply.
2. Less elastic supply.
3. More elastic supply.
4. Inelastic supply.

Market supply curve is ________ summation of individual supply curves.

1. Horizontal.
2. Vertical.
3. Can be both horizontal or vertical.
4. None of the above.

When income of the consumer falls the impact on price-demand curve of an inferior good is:

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.

Law of Demand is a:

1. Quantitative statement.
2. Qualitative statement.
3. Both (a) and (b).
4. None of these.

Government provides various goods like roads, parks, street light and defence services etc to general public through budgetary provisions. These goods are called ________.

1. budgetary goods.
2. government goods.
3. public goods.
4. private goods.

Imperfect competition is a type of market structure showing some but not all feature of competitive market. Which of the following is/ are imperfect competition?

1. Perfect competition.
2. Monopolistic competition.
3. Oligopoly.
4. Both (a) and (b).

How does AR curve under perfectly competitive market looks like?

1. Downward sloping.
2. Straight line parallel to X-axis.
3. Upward sloping.
4. Straight line parallel to Y-axis.

If MPC is 0.6, what will be the MPS?

1. 0.2
2. 0.4
3. 0.9
4. 0.5