Micro PYQ — Page 11

Let us consider a linear demand curve $q = a - bp$. On the same demand curve, arrange the elasticity in ascending order. (A) $|e_D| = 1$. (B) $|e_D| < 1$. (C) $|e_D| > 1$. (D) $|e_D| = 0$. Choose the **correct** answer from the options given below:

The total sum consumer spends on cloth in 2022?

Average fixed cost curve is actually a ................... curve:

An increase in the price of socks is likely to decrease the demand for shoes and a decrease in the price of socks is likely to increase the demand for shoes. Socks and shoes are:

The marginal product of an input initially rises and then after a certain level of employment, it starts falling, thus MP curve looks like an inverse 'U'- shaped curve. This condition is under ............

A point outside the Production Possibility Curve represents: 1. A combination of goods can be produced but resources are underutilized. 2. A combination of goods can be produced, and the resources are fully utilized. 3. A combination of goods can not be produced as it is beyond the capacity of the economy. 4. A combination of goods can be produced and resources are appropriately utilized.

Whether to have more consumption goods or to have investment goods which will boost production and consumption tomorrow, is a part of which of the central problem?

The book 'An Enquiry into the Nature and Causes of the Wealth of Nations' is written by: 1. J. M. Keynes 2. David Ricardo 3. Adam Smith 4. Karl Marx

Why indifference curves are convex to origin? 1. Due to the constant market rate of exchange. 2. Due to the increasing marginal rate of substitution. 3. Due to the constant marginal rate of substitution. 4. Due to a diminishing marginal rate of substitution.

How is the value of the average product calculated in the short-run? 1. By dividing the total product by the number of labor. 2. By dividing the change in total product by the change in labor. 3. By dividing the change in total product by the number of labor. 4. By dividing the total product by the change in labor.

Arrange the following money supply measures in chronological order. (A) Excess supply will prevail in the economy. (B) The tendency of prices to change to restore equilibrium. (C) Suppose market supply is greater than market demand at a given price. (D) Hence, the market is not in equilibrium. Choose the correct answer from the options given below:

What does the rectangle OVBq₀ depicts in the given figure? 

Match List-I with List-II | List-I | List-II | |---|---| | (A) Upper limit on price of goods & services | (I) Leads to excess supply. | | (B) Free entry and exit | (II) Equilibrium price = min AC of the firms. | | (C) Marginal revenue product of labor (MRP_L) | (III) Leads to excess demand. | | (D) Lower limit on price of goods & services | (IV) MR x MP_L. | Choose the correct answer from the options given below: 1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV) 2. (A) - (III), (B) - (II), (C) - (IV), (D) - (I) 3. (A) - (IV), (B) - (III), (C) - (II), (D) - (I) 4. (A) - (IV), (B) - (III), (C) - (I), (D) - (II)

How would the decrease in the price of Good-X impact the budget line, when the price of Good-Y and Income remain unchanged? 1. The intercept points of both Good-X and Good-Y will shift outward. 2. The intercept point of Good-X will shift outward and the intercept point of Good-Y will remain unchanged. 3. The intercept point of Good-X will shift inward and the intercept point of Good-Y will remain unchanged. 4. The intercept points of both Good-X and Good-Y will shift inward.

What would be the equilibrium number of firms in a market of identical firms, when market demand function $(Q_d)$, supply function of a single firm $(Q_s1)$ and equilibrium price (P) are given as $Q_d = 180 - 2P$ $Q_{s1} = 15 + P$ $P = 15$ 1. 5 2. 6 3. 8 4. 9

Which of the following statements are correctly explaining the relationship between the marginal revenue (MR) and price elasticity of demand? (A). Price elasticity is less than 1 when MR is negative. (B). Price elasticity is more than 1 when MR is negative. (C). Price elasticity is more than 1 when MR is positive. (D). Price elasticity is less than 1 when MR is positive. Choose the correct answer from the options given below: 1. (A) and (D) only 2. (A) and (B) only 3. (B) and (D) only 4. (A) and (C) only

Which of the following would appropriately define a budget set?

Arrange the following statements considering the shape of long run marginal costs (LRMC). (A) As output increases, LRAC initially falls (MC < AC). (B) For the first unit of output, both LRMC and LRAC are the same. (C) After a certain point, LRAC rises (MC > AC). (D) LRMC curve is therefore a 'U'-shaped curve. Choose the correct answer from the options given below: 1. (A), (B), (C), (D) 2. (B), (A), (C), (D) 3. (B), (A), (D), (C) 4. (C), (B), (D), (A)

Who is regarded as the father of modern economics? 1. Adam Smith. 2. John Maynard Keynes. 3. Amartya Sen. 4. Abraham Maslow.

What would be the value of the Marginal Rate of Substitution (MRS) when Good-X increases by 5 with the decrease of Good-Y by 15?

Which of the following is not the central problem of the economy? 1. Why are the goods produced? 2. What to produce? 3. How are the goods produced? 4. For whom are the goods produced?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Price elasticity of demand will be equal to1 | (I) When expenditure increases with a rise in price. | | (B) Price elasticity of demand will be equal to 0 | (II) When expenditure decreases with a rise in price. | | (C) Price elasticity of demand will be more than 1 | (III) When the quantity demanded doesn't change with the change in price. | | (D) Price elasticity of demand will be less than1 | (IV) When expenditure doesn't change with the change in price. | Choose the correct answer from the options given below: 1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV) 2. (A) - (III), (B) - (IV), (C) - (II), (D) - (I) 3. (A) - (IV), (B) - (III), (C) - (II), (D) - (I) 4. (A) - (IV), (B) - (III), (C) - (I), (D) - (II)

The short run supply curve is represented as? 1. The rising part of the marginal cost curve. 2. The rising part of the marginal cost curve from and above the minimum average variable cost curve. 3. The rising part of the marginal cost curve from and above the minimum average cost curve. 4. The marginal cost curve.

The shape of the average product and marginal product curves are................... 1. Both Inverse 'U' Shaped 2. Both 'U' Shaped 3. AP 'U' Shaped and MP Inverse 'U' Shaped 4. MP 'U' Shaped and AP Inverse 'U' shaped