Micro PYQ — Page 6

When the average cost is rising, then.

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:

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

Which of the following expressions will be used for calculating excess supply of salt in the market?

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:

What is the total variable cost for producing 200 vases?

Which of the following is not a feature of perfect competition?

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:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Budget line | (I) $-\frac{p_1}{p_2}$ | | (B) Budget constraint | (II) Bundles available to the consumer | | (C) Budget set | (III) $p_1X_1 + p_2X_2 = M$ | | (D) Slope of budget line | (IV) $p_1X_1 + p_2X_2 \leq M$ | Choose the correct answer from the options given below:

Manoj is a seller in a market where more can be sold only by lowering the price of the goods. Which of the following will be true about his revenue. (A) Total revenue will increase at a constant rate. (B) Average revenue will be more than his marginal revenue at all the levels of output sold. (C) Marginal revenue curve will be downward sloping from left to the right. (D) Marginal revenue can be zero at some level of output sold. Choose the correct answer from the options given below:

Which of the following is/are true about the short run costs? (A) Marginal cost is the slope of total variable cost. (B) Average fixed cost curve is a downward sloping rectangular hyperbola. (C) Average variable cost curve is a U shaped curve. (D) Average variable cost curve and average cost curve are parallel to each other. Choose the correct answer from the options given below:

If the marginal rate of transformation is constant throughout, the production Possibilities Frontier will be

Match List-I with List-II | List-I | List-II | |---|---| | (A) Increase in consumers' income | (I) Budget line becomes flatter | | (B) Decrease in price of good on X axis | (II) No change in the slope of budget line | | (C) Equal increase in price of both good X and good Y | (III) Parallel and rightward shift in their budget line | | (D) Decrease in Price of the good on Y axis | (IV) Budget line becomes steeper | Choose the correct answer from the options given below:

The equation of demand curve of a good for a consumer is given to be $p_d = e$ where e is a constant. What will be the shape of the demand curve?

The market determined price of a good is Rs. 40.The government fixes the minimum price of the good as Rs. 50. Calculate the excess demand/excess supply it will cause if the demand and supply functions are Qd = 200 – p and Qs = 120 + p respectively.

The set of all possible combinations of the two inputs, labour and capital, that yield the same maximum possible level of output is called...........

......... is an economy in which there is both the private sector and the government.

Which of the following statements are true for the Indifference Curve? (A). A higher indifference curve gives a greater level of utility. (B). The indifference curve slopes downwards from right to left. (C). The indifference curve slopes downwards from left to right. (D). Two indifference curves never intersect each other. Choose the correct answer from the options given below:

When more workers are hired, the land begins to get 'crowded'. Each worker now has insufficient land to work efficiently. So the output added by each additional worker is now proportionally less as a result the marginal product begins to __________.

In the short run and long run, the shapes of the cost curves for a typical firm are defined as (A). SMC curve cuts the AVC curve from below at its minimum point. (B). LRAC curve cuts the LRMC curve from below at the minimum point of LRMC. (C). SMC curve cuts the SAC curve from below at the minimum point of SAC. (D). Average fixed cost curve is downward sloping. Choose the correct answer from the options given below:

The change in output per unit of change in the input when all other inputs are held constant, is termed as __________.

In long run as long as average cost is falling, marginal cost must be less than the .......

Which of the following factor makes the demand curve to shifts leftward for a normal goods?

Select the correct statements from the following with regard to cost curves : (A) Short run marginal cost, average variable cost and short run average cost curves are 'U'-shaped. (B) SMC curve cuts the AVC curve from below at the minimum point of AVC. (C) SMC curve cuts the AFC curve from below at the minimum point of AFC. (D) Average fixed cost curve is downward sloping. Choose the correct answer from the options given below: