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

When increase in demand in more than increase in supply, then equilibrium quantity will:

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

When supply curve is upward sloping, its slope is __________.

1. Positive.
2. Negative.
3. First positive then negative.
4. Zero.

The number of buyers and sellers in the industry are large, this implies that:

1. Firm is a price taker.
2. Firm is a price maker.
3. Firms earn normal profits.
4. Both (a) and (b)

Marginal cost is defined as:

1. The change in total cost due to a one unit change in output.
2. Total cost divided by output.
3. The change in output due to a one unit change in an input.
4. Total product divided by the quantity of input.

Ed = 1 in case of:

1. Luxuries.
2. Normal goods.
3. Necessities.
4. Essentials.

Under which one of the following forms of market structure does a firm have no control over the price of its product?

1. Monopoly.
2. Monopolistic competition.
3. Oligopoly.
4. Perfect competition.

The branch of economic theory that deals with the problem of allocation of resources is:

1. Microeconomic theory.
2. Macroeconomic theory.
3. Econometrics.
4. None of them.

Match the following.

S. No.	Types of Producing Units		Examples
1.	Primary sector	i	Medical and Transportation
2.	Secondary sector	ii	Mining and Quarrying
3.	Tertiary sector	iii	Construction and manufacturing

Codes: I II III

1. (iii) (ii) (i)
2. (ii) (iii) (i)
3. (i) (ii) (iii)
4. (iii) (i) (ii)

Which of the following is not the property of indifference curve?

1. Higher the indifference curve higher the level of satisfaction.
2. Two indifference curves cannot intersect each other.
3. Indifference curve is concave to origin.
4. Indifference curve is downward sloping.

The government of India decided to produce 1,000 million quintals of wheat this year. The decision regarding quantity of production is a part of which central problem of the economy?

1. What to produce?
2. How to produce?
3. For whom to produce?
4. None of the above