CUET UG Economics — Micro previous year questions with solutions.
The optimum output will be when the relationship between LRMC and LRAC.
in the long run when the average cost is rising, marginal cost must be.
The shape of the long-run average cost curve and long-run marginal cost curve.
Choose the correct statements from the following. (A) The collection of all possible combinations of goods and services that can be produced from a given amount of resources and a given stock of technological knowledge is called the production possibility frontier. (B) Slope of production possibility frontier is called marginal opportunity cost. (C) In positive economic analysis, we study how the different mechanisms function. (D) Scarcity of resources gives rise to the problem of choice.
Match List-I with List-II | List-I | List-II | |---|---| | (A) Demand shifts right and supply remains unchanged. | (I) Price increase, quantity increases. | | (B) Supply shifts right and demand remains unchanged. | (II) Price decrease, quantity increases. | | (C) Demand shifts left and supply shifts left. | (III) Quantity decreases. | | (D) Supply shifts right and demand shifts right. | (IV) Quantity increases. | Choose the correct answer from the options given below: 1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV) 2. (A) - (II), (B) - (I), (C) - (III), (D) - (IV) 3. (A) - (I), (B) - (II), (C) - (IV), (D) - (III) 4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Select the INCORRECT feature of the market with respect to perfect competition. 1. The market consists of a large number of buyers and sellers. 2. Entry into the market as well as exit from the market are free for firms. 3. Buyers are price makers. 4. There is perfect knowledge.
Law of demand is violated when?
How will an increase in the consumer's income affect the budget line? 1. Parallel inward shift of budget line. 2. Parallel outwards shift in budget line. 3. The budget line rotates outwards. 4. Budget line rotates and shifts outwards.
If demand remains constant at any changes in price of commodity then the elasticity of demand for that commodity will be.................... 1. Zero 2. One 3. Between one and zero 4. Infinite
Match List-I with List-II | List-I | List-II | |---|---| | (A) Cardinal utility | (I) Ranking consumption bundles. | | (B) Perfect substitute goods | (II) Level of utility can be expressed in numbers. | | (C) Ordinal Utility | (III) The marginal Rate of Substitution is 1. | | (D) Complimentary goods | (IV) An increase in the price of one good does not lead to an increase in demand for another good. | Choose the correct answer from the options given below: 1. (A) - (I), (B) - (IV), (C) - (III), (D) - (II) 2. (A) - (II), (B) - (III), (C) - (I), (D) - (IV) 3. (A) - (I), (B) - (IV), (C) - (II), (D) - (III) 4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Select the INCORRECT condition for profit maximisation in the perfect market. 1. The price must equal to MC. 2. Marginal cost must be non-decreasing. 3. Price must be less than the average cost. 4. Price must be greater than the average cost.
 The firm's total variable cost at output q₁ is
The equation of the demand curve : pq = e, where e is a constant. Select the INCORRECT statement: 1. The demand curve is a rectangular hyperbola. 2. The value of p times q is constant. 3. The elasticity of demand at all points located on this demand curve is greater than 1. 4. At every point of consumption, the expenditure remains the same.
Two indifference curves can never intersect each other as ............... 1. They give the same level of satisfaction. 2. They give different levels of satisfaction. 3. They are concave to the origin. 4. They are convex to the origin.
When the price elasticity of supply is equal to zero. Then.......... 1. Supply curve is sloping downward. 2. Supply curve is horizontal. 3. Supply curve is upwards sloping. 4. Supply curve is vertical.
Suppose in the long run, the government imposed a tax on the supply of a commodity. How does it affect the equilibrium quantity of commodity? 1. The quantity of commodity will decrease. 2. The quantity of commodity will increase. 3. The quantity of commodity will remain same. 4. The supply curve will shift rightwards which will decrease quantity of commodity.
The wage rate at which the labour market is in equilibrium is a point where. 1. Labour demand=0 2. Labour Demand= Labour Supply 3. Labour Supply=Labour Demand=0 4. Wages= Marginal Revenue from labour x Price
From the following which is incorrect with respect to firm's profit maximization in long run? 1. Price = Long Run Marginal Cost 2. LRMC is first decreasing and then increasing 3. Price = Short Run Marginal Cost 4. Price ≥ Long Run Average Variable Cost
The core reason behind the arising law of proportion is............ 1. Factor proportion changes with keeping one factor constant. 2. Decrease in all input. 3. Increase in all input. 4. All factors remain constant.
When output increases with smaller proportion compare to increase in inputs, this return is called? 1. Decreasing Return to scale 2. Increasing Return to scale. 3. Constant Return to scale. 4. Incremental Productivity.
Suppose in a production process, all inputs get doubled. As a result, if the output gets doubled, the production function exhibits? 1. Decreasing Return to scale. 2. Incresing Returns to scale. 3. Constant Return to scale. 4. Decresing Productivity.
When output increases with the same proportion as increase in inputs, this concept is known by? 1. Marginal diminishing returns. 2. Decreasing return to scale. 3. Increasing return to scale. 4. Constant Return to scale.
When output increases with the larger proportion compare to increase in inputs, this return is called? 1. Decreasing Return to scale. 2. Increasing return to scale. 3. Constant Return to scale. 4. Diminishing Marginal Product.
When some resources are shifted from Use 1 to Use 2 (given technology), the Marginal Rate of Transformation will