Micro PYQ — Page 4

Arrange the following statements related to negative externalities in correct sequence (A) There is an oil refinery which refines crude petroleum and sells it in the market (B) Pollution harms well-being and also kills fish or other organisms (C) Production the refinery may also be polluting the nearby river (D) Such harmful effects that the refinery is inflicting on others, for which it will not bear any cost, are called externalities

Identify, where the point will lie in the production possibility frontier when the resources are either underemployed or are utilized in a wasteful manner 1. A point below the production possibility frontier 2. A point above the production possibility frontier 3. A point on the production possibility frontier 4. A point on or above the production possibility frontier

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

Which of the following statements are true with regard to the production? (A) In the short run, at least one of the factors of production remains fixed. (B) In the long run, all factors of production can be varied. (C) A period can be defined as long run or short run simply by looking at whether all the inputs can be varied or not. (D) In the long run, factors of production can be classified into fixed and variable

Suppose a consumer purchase 15 bananas when its price is Rs. 5 per banana. When the price increases to Rs. 7 per banana, consumer reduces his demand to 12 bananas. Price elasticity of demand would be........... 1. 0.5 2. 0.6 3. 0.4 4. 0.7

As long as average cost is falling

In the long run marginal cost curve shape is ..........

When the average cost is rising, then.

At the final level of production, a typical firm observed.

LRMC cuts the LRAC curve from below at the point where.

Match List-I with List-II (TP : TOTAL PRODUCT; L: UNITS OF LABOUR) | List-I | List-II | |---|---| | (A) $TP/L$ | (I) Total Product is maximum | | (B) $\Delta TP/\Delta L$ | (II) Marginal product | | (C) $\sum MP$ | (III) Total product | | (D) $MP=0$ | (IV) Average Product | Choose the correct answer from the options given below:

Identify the correct sequence to establish the relation between marginal cost and average cost. (A) When Marginal cost falls, average cost also falls. (B) Marginal cost rises but average cost continues to fall. (C) Marginal cost is equal to average cost. (D) Marginal cost rises and average cost also rises. Choose the correct answer from the options given below:

Which of the following indicates a situation of consumer's equilibrium for a rational consumer consuming two goods?

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:

Identify the correct sequence for a firm operating in the short run. (A) Total product increases at a decreasing rate. (B) Marginal product becomes zero (C) Marginal product increases (D) More and more units of variable factor are employed. Choose the correct answer from the options given below:

If there is a positive level of output at which a firm's profit is maximized in the short run, that condition must not hold at that output level:

Choose the correct options with reference to short-run average costs. (A) Average total cost = total cost / quantity of output (B) Average total cost = average variable cost + average fixed cost (C) Average variable cost = average total cost - average fixed cost (D) Average fixed cost = average variable cost - average cost Choose the correct answer from the options given below:

Which of the following will NOT cause a change in the budget set of a consumer?

Which of the following depicts the central problem of economy, 'How to produce'?

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)

Match List-I with List-II | List-I | List-II | |---|---| | (A) Budget Set | (I) $-(P_1/P_2)$ | | (B) Slope of the budget line | (II) $M/P_1$ | | (C) Horizontal intercept of the budget line | (III) $P_1 X_1 + P_2 X_2 \le M$ | | (D) Vertical intercept of the budget line | (IV) $M/P_2$ | Choose the correct answer from the options given below:

If the demand for salt increases supply remains the same and the new demand curve is $Q_D = 400 - p$ What will be the new equilibrium price and quantity?

The total satisfaction derived from consuming the given amount of commodity X is known as _______

If price of a commodity rises from Rs. 10 to Rs. 15, its supply increases by 20%. calculate the price elasticity of supply for this commodity.