- Question 1
Give meaning of an Economy.
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- Question 2
What is market Demand?
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- Question 3
What is the behaviour of average fixed cost as output increases?
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- Question 4
What is the behaviour of average revenue in a market in which a firm can sell more only by lowering the price?
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- Question 5
What is a price taker firm?
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- Question 6
State reasons why does an economic problem arise?
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- Question 7
Given price of a goods, how does a consumer decide as to how much of the good to buy?
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- Question 8
Draw Average Variable Cost, Average Total Cost ad Marginal Cost curves in a single diagram.
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- Question 9
A producer invests his own savings in starting a business and employs a manager to look after it. Identify implicit and explicit costs from this information. Explain.
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- Question 10
Explain the implication of large number of buyers in a perfectly competitive market.
OR
Explain why firms are mutually interdependent in an oligopoly market.
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- Question 11
Define an indifference map. Explain why an indifference curve to the right shows higher utility level.
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- Question 12
A consumer buys 20 units of a good at a price of Rs 5 per unit. He incurs an expenditure of Rs120 when he buys 24 units. Calculate price elasticity of demand using the percentage method. Comment upon the likely shape of demand curve based on this information.
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- Question 13
What does the Law of variable Proportions show? State the behaviour of total product according to this law.
OR
Explain how changes in prices of other products influence the supply of a given product.
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- Question 14
Explain how do the following influence demand for a good:
(i) Rise in income of the consumer.
(ii) Fall in prices of the related goods.
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- Question 15
Explain the conditions of a producer’s equilibrium in terms of marginal cost and marginal revenue. Use diagram.
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- Question 16
Market for a good is in equilibrium. There is simultaneous “increase” both in demand and supply of the good. Explain its effect on market price.
OR
Market for a good is in equilibrium. There is simultaneous “decrease” both in demand and supply of the good. Explain its effect on market price.
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