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

An upward movement along a supply curve shows:

1. Contraction in supply.
2. Decrease in supply.
3. Expansion in supply.
4. Increase in supply.

What happens to ATC when marginal cost is greater than ATC?

1. ATC rises.
2. ATC falls.
3. Slope of ATC becomes constant.
4. None of the above.

Which one of the following options is an economic activity?

1. Listening to music on the radio.
2. Teaching one's own son at home.
3. Medical facilities rendered by a charitable dispensary.
4. A housewife doing household duties.

Which of the following is an intermediate good?

1. Machine.
2. Car.
3. Mobile.
4. Sugar cane in a sugar Mill.

'A few big sellers' is a characteristics of:

1. Perfect competition.
2. Monopolistic competition.
3. Oligopoly.
4. None of the above.

Which of the following is not the function of the central bank?

1. Banking facilities to government.
2. Banking facilities to public.
3. Lendings to government.
4. Lendings to commercial bank.

Reason for the U-shape of MC curve is:

1. Law of Variable Proportions.
2. Returns to Scale.
3. Law of diminishing cost.
4. Law of increasing cost.

The following table show the production of cricket bats and sarees of an imaginary economy:

Production of Cricket Bats (thousand)	0	1	2	3	4	5
Production of Sarees (in lakh)	75	70	62	50	30	0

If the production of cricket bats is increased from 3 thousand to 4 thousand, how much production of sarees will he to be sacrificed by the economy?

1. Zero.
2. 8 lakh sarees.
3. 30 lakh sarees.
4. 20 lakh sarees.

A horizontal supply curve parallel to the quantity axis implies that the Elasticity of Supply is

OR

Which Elasticity of Supply is shown by the supply curve parallel to X-axis?

1. Zero.
2. Infinite.
3. Equal to one.
4. Greater than zero but less than one.

When both demand and supply decrease in the same proportion, then the equilibrium quantity will:

1. Remain the same.
2. Rise.
3. Fall.
4. None of the above.