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

Price theory studies the problem of:

1. What goods to produce and how much to produce.
2. How to produce.
3. For whom to produce.
4. All of the above.

Which one of the following statements is correct?

1. If national income rises, per capita income must also rise.
2. If population rises, per capita income must fall.
3. If national income rises, welfare of the people must rise.
4. None of them.

Credit creation by commercial banks is determined by:

1. Cash Reserve Ratio (CRR).
2. Statutory Liquidity Ratio (SLR).
3. Initial Deposits.
4. All the above.

The supply of a commodity implies:

1. Actual product of a good.
2. Stock available for sale.
3. Total existing stock of the good.
4. The amount of goods offered for sale at a different prices, per unit of time.

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.

When income of the consumer falls the impact on price-demand curve of an inferior good is:

1. Shifts to the right.
2. Shifts to the left.
3. There is upward movement along the curve.
4. There is downward movement along the curve.

Demand of a commodity depends upon _______:

1. Price.
2. Income.
3. Price of related good.
4. All of these.

The supply of a good refers to:

1. Actual production of the good.
2. Total existing stock of the good.
3. Stock available for sale.
4. Amount of the good offered for sale at a particular price per unit of time.

Demand curve is elastic under:

1. Perfect competition.
2. Monopoly.
3. Monopolistic competition.
4. All of the above.