Micro PYQ — Page 12

The case where a marginal product is greater than the average product, where? 1. MP cut AP at Minimum 2. AP remains Constant 3. AP Decreases 4. AP Increases

Keeping the capital as a fixed input, as 3, when the quantity of labor changes from 3 to 4, the total product with labor also rises from 40 to 50 units. What is the average product after the change? 1. 50 2. 13.33 3. 12.5 4. 40

A firm increased the capital by a unit, which led to a rise in total product from 10 units to 24 units. Further increase in capital in the same quantity leads to an increase in total product to 40 units. What is the difference in change in marginal product? 1. 14 2. 2 3. 30 4. 16

In the production of clothes, cotton is defined as................ 1. capital 2. Input. 3. Final Output. 4. Intermediate output

Match List-I with List-II | List-I | List-II | |---|---| | (A) Slope of Budget line | (I) $P_1X_1 + P_2X_2 \leq M$ | | (B) Horizontal intercept of budget line | (II) $M/P_2$ | | (C) Vertical intercept of budget line | (III) $-\frac{P_1}{P_2}$ | | (D) Budget constraints | (IV) $M/P_1$ | Choose the correct answer from the options given below:

Arrange the following statements in the context of "U" shaped SAC curve. (A) SAC is the sum of AVC and AFC. (B) SAC falls when AVC and AFC decrease. (C) When the fall in AFC is greater than the rise in AVC and SAC is still falling. (D) When a rise in AVC becomes greater than the fall in AFC, SAC rises. Choose the correct answer from the options given below:

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 existence of a large number of buyers and sellers in the perfectly competitive market means?

There are two goods that are priced at Rs 5 each and are available only in integral units. If a consumer has Rs 20, then the bundle that this consumer can afford to buy is:

When Government fix the minimum price of any commodity this move of government is known by:

A market where firms can choose where to locate production and workers can choose where to work is called?

How the revelation of the fact that junk-foods might be injurious to health can affect the Demand Curve of junk-foods.

Which of the following states that "The marginal product of a factor input initially rises with its employment level, but after reaching a certain level of employment, it starts falling"?

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:

Arrange the statements to define the relationship between elasticity and expenditure of a commodity. (A) The percentage increase in quantity demanded is greater than the percentage decline in the price. (B) The impact on expenditure depends on how responsive the demand for the good is to the price change. (C) The nature of price elasticity of demand is elastic. (D) Expenditure on the goods will increase. Choose the correct answer from the options given below:

In the determination of a particular variable, the assumption of "ceteris paribus" stands for.

Choose the correct statements in respect of returns to scale. (A) Decreasing returns to scale occur when a proportional increase in all inputs is less than output. (B) Constant returns to scale occur when a proportional increase in all inputs is the same as output. (C) In the long run, factors of production are increased by the same proportion, or factors are scaled up. (D) Increasing returns to scale occur when a proportional increase in all inputs is less than output. Choose the correct answer from the options given below:

If supply curve shifts leftward and demand curve shifts rightward then how it will affect the pricing?

Choose the correct statements in the context of the law of diminishing marginal utility (A) States that each successive unit of a commodity provides lower marginal utility. (B) States that each successive unit of a commodity provides higher marginal utility. (C) Explains why demand curves have a negative slope. (D) States that the marginal utility from consuming each additional unit of a commodity declines as its consumption increases, while keeping consumption of other commodities constant. Choose the correct answer from the options given below:

An increase in production of one extra unit of output will lead to an increase in ..........

The total cost is equal to Rs.95 for 7 units of output and Rs.115 for 8 units of output. What is the marginal cost at the quantity of 8th unit?

The firm must employ more of the variable inputs, in order to increase the production of output. Therefore, as output increases

In the short run, some of the factors of production of a firm ......

When the output is zero in the short run. Which of the following costs are undefined?