When income of the consumer falls, the impact on price-demand cu

Subject

Economics

Class

CBSE Class 12

Pre Boards

Practice to excel and get familiar with the paper pattern and the type of questions. Check you answers with answer keys provided.

Sample Papers

Download the PDF Sample Papers Free for off line practice and view the Solutions online.
Advertisement

 Multiple Choice QuestionsShort Answer Type

1.

Give equation of Budget Line.

3112 Views

 Multiple Choice QuestionsMultiple Choice Questions

Advertisement

2.

When income of the consumer falls, the impact on price-demand curve of an inferior
good is: (choose the correct alternative)

  • Shifts to the right.

  • Shifts of the left.

  • There is upward movement along the curve.

  • There is upward movement along the curve.


A.

Shifts to the right.

Reason: Demand for inferior goods share a negative relationship with consumer's income.
Hence, when the income of the consumer falls, the demand for inferior good
increases leading to the rightward shift of the demand curve.

3700 Views

Advertisement
3.

If Marginal Rate of Substitution is constant throughout, the Indifference curve will
be

  • Parallel to the x-axis.

  • Downward sloping concave.

  • Downward sloping convex.

  • Downward sloping convex.

1789 Views

 Multiple Choice QuestionsShort Answer Type

4.

Giving reason comment on the shape of Production Possibilities curve based on the
following schedule:

Good X (units) Good Y (units)
0 10
1 9
2 7
3 4
4 0
3259 Views

Advertisement
5.

What will be the impact of recently launched 'Clean India Mission' (Swachh Bharat
Mission) on the Production Possibilities curve of the economy and why?
Or

What will likely be the impact of large scale outflow of foreign capital on Production
Possibilities curve of the economy and why?

6122 Views

6.

The measure of price elasticity of demand of a normal good carries minus sign while
price elasticity of supply carries plus sign. Explain why?

1719 Views

7.

There are large numbers of buyers in a perfectly competitive market. Explain the
significance of this feature.

2255 Views

8.

Explain the effects of 'maximum price ceiling' on the market of a good'? Use diagram.

5771 Views

Advertisement
9.

A consumer spends Rs. 1000 on a good priced at Rs. 8 per unit. When price rises by 25 per cent, the consumer continues to spend Rs. 1000 on the good. Calculate price elasticity of demand by percentage method.

3031 Views

10.

Define cost. State the relation between marginal cost and average variable cost.
Or
Define revenue. State the relation between marginal revenue and average revenue.

1253 Views

Advertisement