Micro PYQ

When both the demand and supply curves shift to indicate an increase in demand and supply in the same proportion. Then:

Which of the following is true about the relationship between Total Revenue (TR) and Marginal Revenue (MR) in a perfectly competitive market? (A) Total Revenue will increase at a constant rate. (B) Marginal Revenue is more than Average Revenue. (C) Marginal Revenue remains constant throughout. (D) Marginal Revenue is equal to Average Revenue. Choose the correct answer from the options given b-elow:

The problem of 'what to produce' relates to?

On the basis of given data above, the correct equation of price line will be.

Minimum support price of a foodgrain is the example of _______

Match List-I with List-II | List-I | List-II | | --- | --- | | (A) Relationship between the variable input and output. | (I) Average Product | | (B) Output per unit of variable input. | (II) Marginal Product | | (C) Change in output per unit of change in the input | (III) Law of variable proportions | | (D) The marginal product of a factor input initially rises with its employment level | (IV) Total Product | Choose the correct answer from the options given below:

How does technological progress affect the firms' supply curve?

In the long run __________.

The point on the supply curve at which a firm earns only normal profit is called ...........

Whether to use more resources in education and health or to use more resources in building military services. Which of the central problems of an economy is accurate for this?

________ of an input is defined as the change in output per unit of change in the input when all other inputs are remain constant.

Shape of Average Fixed Cost Curve is:

Which of the following is an example of floor price?

With the shifting demand curve leftward, arrange the following statement in sequential order. (A) At any given price, demand is less. (B) Excess supply will be there. (C) Some producers will decrease the prices of commodity. (D) At new equilibrium, quantity and price will be less. Choose the correct answer from the options given below:

Suppose an individual buy 30 bananas when its price is Rs. 10 per banana. When the price increases to Rs. 14 per banana, she reduces her demand to 24 bananas. In this case,what will be the price elasticity of demand?

Consider the production function $q = f(x_1, x_2)$ where the firm produces q amout of output $x_1$ amount of factor 1 and $x_2$ amount of factor 2. The firm decides to increase the employment level of both the factors t (t > 1). Identify the equation for decreasing returns to scale from the following.

The change in total cost per unit of change in output is known as by which name

Which of the following conditions must hold for a firm to maximise its profit. (A) Price= Short run marginal Cost (B) Short Run marginal cost curve is non-decreasing (C) Price ≤ Marginal Cost (D) Price ≥ Average variable cost Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | | --- | --- | | (A) Analysis assumes that level of utility can be expressed in numbers. | (I) Cardinal Utility | | (B) Change in total utility due to consumption of one additional unit of a commodity | (II) Law of Diminishing Marginal Utility. | | (C) Marginal utility from consuming each additional unit of a commodity declines as its consumption increases. | (III) Marginal Utility | | (D) The amount of mangoes that the consumer has to forego in order to get an additional banana, her total utility level being the same. | (IV) Marginal rate of substitution | Choose the correct answer from the options given below:

Find the correct statement/statements. (A) Goods which are consumed together are called complementary goods. (B) The market demand curve can be derived as a vertical summation of the individual demand curves. (C) Price elasticity of demand is a measure of the responsiveness of the demand for a good to changes in its price. (D) If the consumer's preferences change in favor of a good, the demand curve for such a good shifts leftward. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | | --- | --- | | (A) Total revenue | (I) Minimum of LRAC curve. | | (B) Supply | (II) A firm earns only normal profit. | | (C) Shut down point | (III) Market price multiplied by the firm's output. | | (D) Break-even point | (IV) Quantity sold at a given price. | Choose the correct answer from the options given below:

Arrange the given statements in chronological order stating the implications of free entry and exit assumptions in a equilibrium market. (A) Supply curve shifts rightward, however demand remains unchanged. (B) At the prevailing market price, each firm is earning a supernormal profit and will attract some new firms. (C) Market prices fall, and supernormal profits are eventually wiped out. (D) All firms in the market are earning normal profit, no more firms will have incentive to enter. Choose the correct answer from the options given below: