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

An increase in the supply of a good is caused by:

1. Improvements in its technology.
2. Fall in the prices of other goods.
3. Fall in the prices of factors of production.
4. All of them.

Macro economics deals with:

1. Theory of distribution
2. Theory of income and employment
3. Theory of economic growth
4. All of the above

What will be the effect on exports if foreign exchange rate increases?

1. Increases.
2. Decreases.
3. Remains constant.
4. None of them.

In monopolistic competition, which relationship is true from the following between AR and MR?

1. AR = MR.
2. AR < MR.
3. AR > MR.
4. None of these.

Marginal utility of a particular commodity at the point of saturation is:

1. Zero.
2. Unity.
3. Greater than unity.
4. less than unity.

Demand for electric power is elastic because _______:

1. It is available at a very high price.
2. It is essential for life.
3. It has many uses.
4. Both (b) and (c).

Function showing relationship between input and output is known as ____________.

1. Consumption function.
2. Investment function.
3. Production function.
4. Cost function.

Which of the stages is relevant for a firm which aims at maximum economic efficiency in the law of variable proportion?

1. Stage I
2. Stage II
3. Stage III
4. Stage IV

Hint: Under this stage, TP is the maximum and MP becomes zero. It is relevant because this stage production is maximum. In other words, a rational producer will produce in stage-2, where both MP and AP of variable factors are diminishing.

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.