Micro PYQ — Page 2

Under perfect competition, for the producer to be in equilibrium:

Identify the characteristics of the resources from the following (A) Resources are limited (B) Resources are available for free (C) Resources are scarce only in developing countries. (D) Resources have alternative uses. Choose the correct answer from the options given below:

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:

Shape of Average Fixed Cost Curve is:

The optimum bundle of the consumer is located at the point where..................?

Which of the following is incorrect with reference to the imposition of a price floor for a good?

Which of the following central problems deal with the distribution of final goods and services?

Which of the following are true about indifference curves? (A) All the points lying on an indifference curve provide the consumer with different levels of satisfaction. (B) Indifference curves are convex to the origin due to law of Diminishing Marginal Rate of Substitution. (C) Higher indifference curve gives greater level of utility. (D) In the case of perfect substitutes, indifference curves are straight lines. Choose the correct answer from the options given below:

What is Consumer Price Index?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Perfect Competition | (I) No change in equilibrium price | | (B) Increase in Demand= Decrease in Supply | (II) Price taking Behavior | | (C) Increase in Demand > Decrease in Supply | (III) Decrease in equilibrium price | | (D) Increase in Supply > Decrease in Demand | (IV) Increase in equilibrium price | Choose the correct answer from the options given below:

In an economy producing only two goods X and Y, the opportunity cost of producing 5 units of good X is 3 units of good Y. The above statement implies that _____. (choose the correct option)

The curve gives the maximum amount of corn that can be produced in the economy for any given amount of cotton and vice versa. This curve is called.........

In the short run, the shape of marginal cost, average variable cost and short run average cost curves are:

If we want to have more of one of the goods, we will have less of the other good. Thus, there is always a cost of having a little more of one good in terms of the amount of the other good that has to be forgone. What is this cost known as?

The total sum that the consumer has to spend on wheat in 2025?

At the minimum point of the long run average cost curve .......... is observed.

In inverse 'U'-shaped average product curve; as long as the value of Marginal Product remains higher than the value of the average product, in this condition the average product continues to ..........

Arrange the following statement when the market demand curve shifts rightward with the supply curve remaining unchanged. (A) The shift indicates that at any price the quantity demanded is more than before. (B) Some individuals will be willing to pay higher price and the price would tend to rise. (C) There is excess demand. (D) At the new equilibrium, quantity and price will be greater than before. Choose the correct answer from the options given below:

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 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 ............

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:

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.

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?

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