Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

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.

When AC is more than AR, what is the firm doing?

1. Making supernormal profit.
2. Incurring loss.
3. Having breakeven point.
4. Minimising losses.

The opportunity cost of watching a movie will be equal to:

1. The time lost while watching the show.
2. The pleasure that could have been enjoyed watching TV instead.
3. The pleasure enjoyed by watching the show.
4. The amount paid to buy the tickets.

Current account of BOP records transactions is relating to ______.

1. exchange of goods.
2. exchange of services.
3. unilateral transfers.
4. all of them.

Assume that consumers' incomes and the number of sellers in the market for goods A both decrease. Based upon this information, we can conclude, with certainty, that the equilibrium _________.

1. price will increase.
2. price will decrease.
3. quantity will increase.
4. quantity will decrease.

In case of inferior goods like bajra, a fall in its price tends to _______:

1. Make the demand remain constant.
2. Reduce the demand.
3. Increase the demand.
4. Change the demand in an abnormal way.

As we move along a downward sloping straight line demand curve from left to right, price elasticity of demand:

1. Remains unchanged.
2. Goes on falling.
3. Goes on rising.
4. Falls initially then rises.

If MPS is one, how much is MPC?

1. 3
2. 2
3. 0
4. 1

Demand curve of a firm is perfectly elastic under: (Choose the correct alternative)

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

Capital receipts may come from:

1. Market borrowings.
2. Provident funds.
3. Recoveries of loans.
4. All of them.