Micro PYQ — Page 12

Identify the incorrect option from the following related to a perfectly competitive market.

A perfectly competitive market in an economy is categorized by the following features. (A) Firms are price-takers. (B) Average revenue is equal to market price. (C) Market is perfectly inelastic. (D) Marginal revenue is equal to market price. Choose the correct answer from the options given below:

Individual demand for a good does not depend upon which of the following?

A set of arrangements where economic agents can freely exchange their endowments or products with each other. Such an economy is defined as?

An individual buys $15$ kg of sugar when its price is Rs. $5$ per kg. When the price increases to Rs. $7$ per kg, the demand goes down to $12$ kg of sugar. What is the price elasticity of demand for sugar?

The optimum output will be when the relationship between LRMC and LRAC.

Let us consider the example of a market consisting of identical farms producing the same quality of wheat. Suppose the market demand curve and the market supply curve for wheat are given by: qᵈ = 200 - p and qˢ = 120 + p. What is the equilibrium price?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Satisfaction derived from consuming the given amount of some commodity x. | (I) Marginal rate of substitution. | | (B) Change in total utility due to consumption of one additional unit of a commodity. | (II) Ordinal Utility | | (C) Ranking of various consumption bundle. | (III) Marginal Utility | | (D) Downward slope of indifference curve. | (IV) Total Utility | Choose the correct answer from the options given below:

The total sum that the consumer has to spend on wheat in 2022?

In Microeconomics, what does supply refer to?

A firm will shut down in the short run if__________.

With regard to price elasticity, in general, demand for a luxury good is likely to be ........ 1. Inelastic 2. Unitary elastic 3. Perfectly Inelastic 4. Elastic

How much of Good X can the consumer consume if she spends her entire income on that good?

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:

Which of the following is true about the law of variable proportions? (A) Total product eventually declines. (B) Average product is an inverse U shaped curve. (C) Marginal product becomes equal to Average product at its minimum. (D) Marginal product can never be negative. Choose the correct answer from the options given below:

Arrange the following elasticity degrees along the demand curve in their ascending order. (A) Elasticity (eD) = 1 (B) Elasticity (eD) > 1 (C) Elasticity (eD) < 1 (D) Elasticity (eD) = 0 Choose the correct answer from the options given below:

How government intervention through price control policy will have an impact on the market? (A) The government imposed lower limit on the price that may be charged (B) For certain goods and services, a fall in price below a particular level is not desirable (C) Thereby leading to an excess supply in the market (D) Government needs to buy the surplus at the predetermined price Choose the correct answer from the options given below:

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.

Identify the options which reflect the impact of simultaneous shifts of demand and supply on equilibrium (A) When demand shift right and supply left, quantity may increase, decrease or remain unchanged but price decreases (B) When demand and supply shift leftward, quantity decreases but price may increase, decrease or remain unchanged (C) When demand and supply shift rightward, quantity increases but price may increase, decrease or remain unchanged (D) When demand shift left and supply right, quantity may increases, decreases or remain unchanged but price decreases

Which of the following is not true?

At the positive level of output, where a firm's profit is maximized, the following conditions must hold. (A) $p = LRMC$ (B) LRMC is non-decreasing at $q_0$ (C) $p \leq LRAC$ (D) $p \geq$ min. LRAC Choose the correct answer from the options given below:

When utility is measured in quantitative terms, it is ______ of consumer equilibrium.

In the course of production, exchange and consumption of goods and services, every society has to face a scarcity of resources; and it is the scarcity of resources that gives rise to the problem of .............

The price elasticity of demand is different at different points on the linear demand curve. Arrange the elasticity point on a downward sloping (left to right) demand curve. (A). |ed| < 0 (B). |ed| = 1 (C). |ed| > 1 (D). |ed| < 1 Choose the correct answer from the options given below: