Production and cost — Economics STD 12 Humanities & Commerce — Question

Which one of the following statements is true to the relationship between marginal cost function and average cost function?

1. If MC is greater than ATC, ATC is falling.
2. ATC curve intersects MC curve at minimum MC.
3. MC curve intersects ATC curve at minimum ATC.
4. If MC is less than ATC, ATC is increasing.

When demand increases with no change in supply, equilibrium price __________ and quantity ____________.

1. Rises, rises.
2. Rises, falls.
3. Falls, falls.
4. Falls, rises.

______ are the important tools of macroeconomic studies.

1. Demand and supply.
2. Aggregate demand and aggregate supply.
3. Exports and imports.
4. All of the above.

All of the following are characteristics of a monopoly except:__________.

1. There is a single firm.
2. The firm is a price-taker.
3. The firm produces a unique product.
4. The existence of some advertising.

Which bank in India is the controller of credit?

1. Axis Bank.
2. Reserve Bank of India.
3. ICICI Bank.
4. Punjab National Bank.

Potato chips and popcorn are substitutes. A rise in the price of potato chips will .............. the demand for popcorn and the demand of potato chips will

1. Increase; increase.
2. Increase; decreases.
3. Decrease; decrease.
4. Decrease; increase.

Law of Demand is a _______:

1. Quantitative statement.
2. Qualitative statement.
3. Both (a) and (b).
4. Hypothetical.

Which one of the following options is likely to cause an inward shift in a country's PPC?

1. Earthquake destroying resources of the country.
2. Scientists discovering new machines.
3. Workers getting jobs in a new metro project.
4. The country finds new reserves of crude oil.

At a price above the equilibrium price, there is:

1. Excess supply.
2. Excess demand.
3. Ceiling.
4. Flooring.