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

Net value added is equal to ________.

1. payments accruing to factors of production.
2. compensation to employees
3. wages plus rents.
4. value of output minus depreciation.

Cost function explain the relationship between:

1. Income and expenditure.
2. Input and output.
3. Fixed cost and variable cost.
4. Output and cost of production.

Increase or decrease in supply means:

1. Change in supply due to change in its own price.
2. Change in supply due to change in factors other than its own price.
3. Both (a) and (b).
4. None of the above.

Under perfect competition, what is the relationship between Price P , Average Revenue and Marginal Revenue?

1. P = =
2. P > >
3. P < <
4. P = >

The absolute value of the coefficient of price elasticity of demand ranges from:

1. Zero to infinity.
2. Minus infinity to plus infinity.
3. One to minus infinity.
4. One to infinity.

Microeconomics deals with which of the following?

1. Total output of an economy.
2. Measurement of a nation's inflation rate.
3. How producers and consumers interact in individual market?
4. How tax policies influence economic growth?

A government shows a primary deficit of 10,000 crore. The revenue expenditure on interest payment is 8000 crore. How much is the fiscal deficit?

1. 8000 crore.
2. 18000 crore.
3. 1000 crore.
4. 8000 crore.

Which objective of government budget increases equality in the society?

1. Re-distribution of income and wealth.
2. Economic stability.
3. Allocation of resources.
4. Economic growth.