Introduction of Micro-Economics — Economics STD 12 Humanities & Commerce — Question

Under monopoly form of market, TR is maximum when:

1. MR is maximum.
2. MR.
3. MR > 0.
4. MR is zero.

Which one of the following statements is an example of an "implicit cost”?

1. Interest that could have been earned on retained earnings used by the firm to finance expansion.
2. The payment of rent by the firm for the building in which it is housed.
3. The interest payment made by the firm for funds borrowed from a bank.
4. The payment of wages by the firm.

NI = Domestic Income, when:

1. Net Factor Income from abroad (NFIA) is positive.
2. NFIA is negative.
3. NFIA is zero.
4. None of the above.

Increase in the value of domestic currency by the government is called _______.

1. depreciation.
2. devaluation.
3. revaluation.
4. appreciation.

A manufacturer supplies good in such a way that if the price rises by 10%, they are prepared to supply 15% more. In this case, elasticity will be best described as:

1. Inelastic.
2. More than unitary elastic.
3. Perfectly elastic.
4. Unitary elastic.

When marginal utility is zero, total utility is.

1. Zero.
2. Minimum.
3. Maximum.
4. Negative.

Which of the following cost decreases continuously with increase in production?

1. Total Variable Cost.
2. Marginal Cost.
3. Average Total Cost.
4. Average Fixed Cost.

When TP is at its point of inflexion, the MP is:

1. Falling.
2. Negative.
3. Zero.
4. Maximum.

The law of variable proportions is drawn under all of the assumptions mentioned below except the assumption that:

1. The technology is changing.
2. There must be some inputs whose quantity is kept fixed.
3. We consider only physical inputs and not economically profitability in monetary terms.
4. The technology is given and stable.