Micro PYQ — Page 7

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 __________.

When labor changes from 3 to 4, the total product changes from 24 to 40, calculate the marginal product.

In the long run, average cost must be rising as the firm increases output as long as the.......... operates.

The price of a commodity increases by 10%, its demand drops by 12%. What is the nature of price elasticity of demand?

Perfect information implies that all buyers and all sellers are completely informed about the price, quality and other relevant details about the product, as well as the market. These features result in the single most distinguishing characteristic of perfect competition, that is...

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 scarcity of resources in the economy gives rise to the problem of............

Arrange a statement of market equilibrium when the demand curve shifts leftward: (A). The shift indicates that at any price the quantity demanded is less than before. (B). Some firms will reduce the price of their commodity so that they can sell their desired quantity. (C). Excess supply will arise. (D). At the new equilibrium, quantity and price will be less than before. 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 .......

Match List-I with List-II | List-I | List-II | |---|---| | (A). The level of utility can be expressed in numbers. | (I). Total Utility | | (B). The change in total utility due to consumption of one additional unit of a commodity. | (II). Ordinal Utility | | (C). The total satisfaction derived from consuming the given amount of some commodity. | (III). Cardinal Utility | | (D). The level of utility can be expressed in ranks. | (IV). Marginal Utility | Choose the correct answer from the options given below:

A firm produce $q$ amount of output using $x₁$ amount of factor 1 and $x₂$ amount of factor 2. Match List-I with List-II | List-I | List-II | |--------|---------| | (A). Cobb-Douglas Production Function | (I). $f(tx_1, tx_2) > t \cdot f(x_1, x_2)$ | | (B). Constant returns to scale | (II). $f(tx_1, tx_2) < t \cdot f(x_1, x_2)$ | | (C). Increasing returns to scale | (III). $q = x_1^\alpha x_2^\beta$ | | (D). Decreasing returns to scale | (IV). $f(tx_1, tx_2) = t \cdot f(x_1, x_2)$ | Choose the correct answer from the options given below:

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

Let us consider the example of a market consisting of identical farms producing the same quality of wheat. Suppose the market demand curve and the market supply curve for wheat are given by: qᵈ = 200 - p and qˢ = 120 + p. What is the equilibrium price?

For the firm to continue to produce, in the long run, price must be greater than the average cost (p > AC) and in the short run, price must be greater than the ......

Firms can choose where to locate production and workers to choose where to work. There are various immigration laws which restrict the movement of labour between countries. This market is called...

Arrange the following concept emerges in context of consumer equilibrium. (A) Transfer his expenditure from Good Y to Good X. (B) Sacrifice more of Good Y to gain Good X. (C) Till, Marginal Rate of Substitution (MRSxy) = Market Rate of Exchnage. (D) Suppose, Marginal Rate of Substitution (MRSxy) > Market Rate of Exchnage. Choose the correct answer from the options given below:

Suppose that the unit tax imposed by the government is Rs 50. Then, if the firm produces and sells 100 units of the good, the total tax that the firm must pay to the government is ...................

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:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Normal profit | (I) Minimum level of profit need by firm to be in business. | | (B) Shut down point | (II) Minimum level of LRAC curve | | (C) Break-even point | (III) Profit Over and above normal profit | | (D) Super-normal profit | (IV) The point on which firm earn only normal profit. | Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Parallel inward shift in budget line | (I) M/p₁ > M/p₁' | | (B) Parallel outward shift in budget line | (II) M/p₁ < M/p₁' | | (C) Budget line steeper | (III) M' < M | | (D) Budget line flatter | (IV) M' > M | Choose the correct answer from the options given below:

When more and more workers are applied on the fixed land then the marginal productivity of additional worker will ............... to the total output.

From the following statements about a firm's supply curve, select the correct statements: (A) Technological progress is expected to shift the supply curve of a firm to the right. (B) An increase in input prices is expected to shift the supply curve of a firm to the left. (C) A decrease in input prices is expected to shift the supply curve of a firm to the left. (D) The imposition of a unit tax shifts the supply curve of a firm to the left. Choose the correct answer from the options given below:

Which function tells us the relation between inputs and output?