Micro PYQ — Page 9

In a particular country, there was a severe heatwave. Arrange the following in the sequence of order in context of the market of ice-creams. (A) Rise in the price of ice cream. (B) Supply will remain the same. (C) Competition among the buyers of ice cream inceaseees. (D) The demand for ice cream increases. Choose the correct answer from the options given below:

Why indifference curves are convex to origin? 1. Due to the constant market rate of exchange. 2. Due to the increasing marginal rate of substitution. 3. Due to the constant marginal rate of substitution. 4. Due to a diminishing marginal rate of substitution.

When demand curve shift rightward and supply curve shift leftward what impact this will have on pricing?

Which of the following states that "The marginal product of a factor input initially rises with its employment level, but after reaching a certain level of employment, it starts falling"?

What would be the value of the Marginal Rate of Substitution (MRS) when Good-X increases by 5 with the decrease of Good-Y by 15?

Arrange the given statements in chronological order stating the implications of free entry and exit assumptions in a equilibrium market. (A) Supply curve shifts rightward, however demand remains unchanged. (B) At the prevailing market price, each firm is earning a supernormal profit and will attract some new firms. (C) Market prices fall, and supernormal profits are eventually wiped out. (D) All firms in the market are earning normal profit, no more firms will have incentive to enter. Choose the correct answer from the options given below:

Arrange the statements to define the relationship between elasticity and expenditure of a commodity. (A) The percentage increase in quantity demanded is greater than the percentage decline in the price. (B) The impact on expenditure depends on how responsive the demand for the good is to the price change. (C) The nature of price elasticity of demand is elastic. (D) Expenditure on the goods will increase. Choose the correct answer from the options given below:

In which of the following conditions, output increases with the same proportion of input?

If due to fall in price, total expenditure on the commodity falls, it indicates?

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 existence of a large number of buyers and sellers in the perfectly competitive market means?

When the output added by each additional worker is proportionally less, what it shows?

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:

From which of the following, consumers can choose their consumption bundle?

Find the correct statement/statements. (A) Goods which are consumed together are called complementary goods. (B) The market demand curve can be derived as a vertical summation of the individual demand curves. (C) Price elasticity of demand is a measure of the responsiveness of the demand for a good to changes in its price. (D) If the consumer's preferences change in favor of a good, the demand curve for such a good shifts leftward. Choose the correct answer from the options given below:

In order to be effective, the price ceiling should be determined _______.

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.

The core reason behind the arising law of proportion is............ 1. Factor proportion changes with keeping one factor constant. 2. Decrease in all input. 3. Increase in all input. 4. All factors remain constant.

If the production is increased to 300 vases, what will happen to Fixed cost per unit?

The collection of all possible combinations of the goods and services that can be produced from a given amount of resources and a given stock of technological knowledge is called?

What are the key components of a perfectly competitive market? (A) Large number of buyers and sellers. (B) Homogeneous product. (C) Free Entry and exit. (D) Asymmetric Information. 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:

Price ceilings are also known as............

Which of the following statements are correctly explaining the relationship between the marginal revenue (MR) and price elasticity of demand? (A). Price elasticity is less than 1 when MR is negative. (B). Price elasticity is more than 1 when MR is negative. (C). Price elasticity is more than 1 when MR is positive. (D). Price elasticity is less than 1 when MR is positive. Choose the correct answer from the options given below: 1. (A) and (D) only 2. (A) and (B) only 3. (B) and (D) only 4. (A) and (C) only