- Question 1
When the total fixed cost of producing 100 units is Rs 30 and the average variable cost Rs 3, total cost is : (Choose the correct alternative)
(a) Rs 3
(b) Rs 30
(c) Rs 270
(d) Rs 330 VIEW SOLUTION
- Question 2
When the Average Product (AP) is maximum, the Marginal Product (MP) is : (Choose the correct alternative)
(a) Equal to AP
(b) Less than AP
(c) More than AP
(d) Can be any one of the above VIEW SOLUTION
- Question 3
State one example of positive economics. VIEW SOLUTION
- Question 4
Define fixed cost. VIEW SOLUTION
- Question 5
Explain the central problem of "for whom to produce".
OR
Explain the central problem of "choice of technique". VIEW SOLUTION
- Question 6
What is meant by inelastic demand? Compare it with perfectly inelastic demand. VIEW SOLUTION
- Question 7
When the price of a commodity changes from Rs 4 per unit to Rs 5 per unit, its market supply rises from 100 units to 120 units. Calculate the price elasticity of supply. Is supply elastic? Give reason. VIEW SOLUTION
- Question 8
What is meant by price ceiling? Explain its implications. VIEW SOLUTION
- Question 9
Given the price of a good, how will a consumer decide as to how much quantity to buy of that good? Explain.
ORWhat is indifference Curve? State three properties of Indifference curves.
VIEW SOLUTION
- Question 10
State three characteristics of monopolistic competition. Which of the characteristics separates it from perfect competition and why?
OR
Explain the implications of the following :
(a) Freedom of entry and exit of firms under perfect competition
(b) Non-price competition under oligopoly VIEW SOLUTION
- Question 11
Explain the conditions of consumer's equilibrium using Indifference Curve Analysis. VIEW SOLUTION
- Question 12
Explain the conditions of producer's equilibrium in terms of marginal revenue and marginal cost. VIEW SOLUTION