CUET UG Economics — Micro previous year questions with solutions.
Choose the incorrect option from the following with reference to production in the short run.
Consider a production function $q = f (x_1, x_2)$ where the firm produces q amount of output using $x_1$ amount of factor 1 and $x_2$ amount of factor 2. Now suppose the firm decides to increase the employment level of both the factors t (t > 1) times. Identify the correct statement from the following.
Find the equilibrium price of salt in this market.
If demand for salt increases, and there is no change in the equilibrium price in the market, how does it affect the market?
Which of the following expressions will be used for calculating excess supply of salt in the market?
If the government imposes a price ceiling of Rs 31 on salt, what will be the volume of excess demand/ supply in the market?
Match List-I with List-II | List-I | List-II | |---|---| | (A) Increase in price of goods X | (I) Increase in demand for normal goods. | | (B) Increase in income of consumers | (II) Demand is price inelastic | | (C) Good X is a necessary good | (III) Unit elasticity of demand. | | (D) Demand curve of Good X is a rectangular hyperbola | (IV) Contraction in demand for good X | Choose the correct answer from the options given below:
Which of the following is NOT a condition for profit maximization of a perfectly competitive firm in the short run?
If the total revenue curve of a firm is an upward sloping straight line, then which of the following is true for this firm?
Match List-I with List-II | List-I | List-II | |---|---| | (A) Land | (I) Interest | | (B) Labor | (II) Profit | | (C) Capital | (III) Wages | | (D) Entrepreneurship | (IV) Rent | Choose the correct answer from the options given below:
Individual demand for a good does not depend upon which of the following?
Identify the correct sequence due to which firms under perfect competition earn normal profits in the long run. (A) The firms are earning less than normal profit at the prevailing price. (B) The profits of each firm will increase to the level of normal profit. (C) No more firm will want to leave, since they will be earning normal profit here. (D) Some firms will exit, which will lead to an increase in price. Choose the correct answer from the options given below:
Which of the following is incorrect with reference to the imposition of a price floor for a good?
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:
Two goods X and Y are such a combination that, when the price of good Y increases, the demand for good X increases, How are goods X and Y related?
Which of the following is not true?
Suppose the Income of consumers in a market increase. How will this effect the equilibrium price of the commodity, assuming that it is a normal good? (A) There is excess demand at the existing price. (B) Rising price leads to contraction in demand and expansion in supply and a new equilibrium price is attained, which is higher than the initial price. (C) The demand curve shifts rightward. (D) There is upward pressure on the price and price starts rising. Choose the correct answer from the options given below:
Match List-I with List-II | List-I | List-II | |---|---| | (A) Excess demand | (I) Supernormal profits | | (B) Excess supply | (II) Perfect competition | | (C) Entry of new firms in the market | (III) Price tends to fall | | (D) Price taker | (IV) Price tends to rise | Choose the correct answer from the options given below:
Which of the following is not a feature of perfect competition?
In which of the following, the demand for a good will be highly price elastic?
"If and only if between any two bundles, the consumer prefers the bundle which has more of at least one of the goods and no less of the other good as compared to the other bundle". Such preferences are known as
Which of the following is true regarding supply of a commodity? (A) Technological progress leads to a decrease in the supply of a commodity. (B) When the price of inputs rises, the supply curve of the good shifts to the left. (C) Technological progress shifts the supply curve of the firm to the right. (D) Imposition of a unit tax on a firm shifts the supply curve of the goods produced by the firm to the left. Choose the correct answer from the options given below:
For a hypothetical firm, the total cost of producing 5 units of a commodity is Rs. 310 and that of producing 8 units is Rs. 850. If the firm has to spend Rs. 50 even when there is no output, what will be the marginal cost of producing the 8th unit?
If the marginal cost(MC) of a perfectly competitive firm is as given below and the price of the product is Rs 15, find the profit-maximizing output of the firm. | output | 1 | 2 | 3 | 4 | 5 | 6 | |---|---|---|---|---|---|---| | MC | 18 | 15 | 10 | 12 | 15 | 24 |