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

When there is an improvement in technology, holding everything else constant:

1. The production possibilities frontier shifts inward.
2. The production possibilities frontier shifts upward.
3. The production possibilities frontier remains the same.
4. The production possibilities frontier shifts downwards.

The _______ distance between TVC and TC is ________.

1. Vertical, TFC.
2. Horizontal, TFC.
3. Horizontal, AFC.
4. Vertical, AFC.

In case of Giffen goods, the demand curve will be:

1. Horizontal
2. Downward-sloping to the right.
3. Vertical.
4. Upward-sloping to the right.

One of the condition of producer equilibrium for a firm under perfectly competitive market is:

1. MR = MC
2. MR = AR
3. MC = ARE
4. None of the above.

The various monetary policy measures that can increase aggregate demand, and thus, control the problem of deficient demand are:

1. Reduction in bank rate.
2. Purchase of government securities in the open market by the central bank.
3. Reduction in CRR and SLR.
4. All of them.

Scholarship is an example of:

1. Grant.
2. Transfer payment.
3. Subsidies.
4. Capital formation.

Other things remaining unchanged, when in a country the price of foreign currency rises, national income is: (choose the correct alternative)

1. Likely to rise.
2. Likely to fall.
3. Likely to rise and fall both.
4. Not affected.

Government transactions include _______ to keep the BOP in balance and which are not carried out for profits.

1. borrowings from IMF and other financial institutions
2. grants and donations
3. foreign exchange reserve
4. Both (a) and (C)

If budgetary deficit is nil and borrowings and other liabilities are 70 crore, what is the amount of fiscal deficit?

1. Nil.
2. 30 crore.
3. Can't say.
4. 70 crore.