Micro PYQ — Page 3

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:

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

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

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?

Identify the correct sequence of events when a minimum support price is imposed: (A) Government buys the surplus at the predetermined price. (B) Situation of Surplus occurs due to imposition of floor price. (C) Government sets a minimum price. (D) Market equilibrium occurs by the intersection of demand and supply curves. Choose the correct answer from the options given below:

What is the Marginal Rate of Substitution(MRS)? (A) The rate at which a consumer is willing to substitute one good for another. (B) Equal to the slope of the indifference curve. (C) Changes as we move along the indifference curve. (D) Is constant for perfect substitutes. Choose the correct answer from the options given below:

Which of the following can shift the demand curve to the right? (A) Increase in the income of the consumer (For normal goods). (B) Decrease in the price of complementary goods. (C) Increase in the price of substitute goods. (D) Increase in the price of goods. Choose the correct answer from the options given below:

If the price of a good increases from ₹20 to ₹25 and the quantity demanded decreases from 100 units to 80 units, calculate the price elasticity of demand.

Which statement is incorrect in the context of relationship between AVC and SMC?

The shape of the average fixed cost curve is ........................

In a production function $q = f(x_1, x_2)$ where the firm produces q output using $x_1$ of factor 1 and $x_2$ of factor 2. Now suppose the firm decides to increase the employment level of both the factors t (t > 1) times. then which among the following is correct?

Arrange the following statements in chronological order in respect to the impact of a unit tax on supply: (A) Imposition of unit tax increases the price of commodities. (B) Increased prices will lead to an increase in LRAC and LRMC. (C) The firm's long run supply curve shifts to the left. (D) At any given market price, the firm supplies fewer units of output. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Production function | (I) $f(tx_1, tx_2) > t f(x_1, x_2)$ | | (B) Constant returns to scale | (II) $f(tx_1, tx_2) < t f(x_1, x_2)$ | | (C) Increasing returns to scale | (III) $f(x_1, x_2)$ | | (D) Decreasing returns to scale | (IV) $f(tx_1, tx_2) = t f(x_1, x_2)$ | Choose the correct answer from the options given below:

Choose the correct equations in the context of costs. (A) TFC = AFC × quantity (B) LRMC = (TC at $q_n$ units) – (TC at $q_{n-1}$ units) (C) TC = TVC × TFC (D) LRAC = TC/q Choose the correct answer from the options given below:

The exceptional case in optimal choice of the consumer is where ..................

The rate at which the consumer is able to substitute one good for the other in the market is called?

The problem 'For whom to produce' is basically concerned with _______.

At zero level of output ,if the total cost(TC) is 20. What will be the value of the Average Fixed cost (AFC) at the 6th level of output?

What will be elasticity of demand of a commodity when its price rises by 20% and quantity demanded falls from 125 units to 75 units?

Which of the following are features of a perfect competitive market? (A) Free entry and exit of firms. (B) Huge selling cost. (C) perfectly elastic demand curve. (D) perfect market knowledge among buyers. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Substitution effect stronger than the income effect | (I) Inferior goods | | (B) Income effect stronger than the substitution effect | (II) Complementary goods | | (C) Demands and income move opposite direction | (III) Normal goods | | (D) Goods consumed together | (IV) Giffen goods | Choose the correct answer from the options given below:

Arrange the following statement in the context of elasticity along a linear demand curve (left to right). (A) e_d = 1 (B) e_d > 1 (C) e_d = 0 (D) e_d < 1 Choose the correct answer from the options given below:

To be effective, the floor price should be determined

A functional relation between the two variables expressed $y = 50 - x$, will have slope.