Short Answer Type
Multiple Choice QuestionsWhen 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.
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.
Short Answer TypeGiving 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 |
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?
The measure of price elasticity of demand of a normal good carries minus sign while
price elasticity of supply carries plus sign. Explain why?
There are large numbers of buyers in a perfectly competitive market. Explain the
significance of this feature.
The number of buyers and sellers operating under perfect competition is very high. As the
number of individual sellers very large, an individual seller cannot fix the price. Similarly
no single buyer can fix the price or change it by his action. Even if he increases or reduces
demand, it does not make any effect on the total demand in the market. Price of a product
is determined by the interaction of total demand and total supply in the market. Hence
every seller and buyer under perfect competition is a price taker and not a price maker.
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.
Define cost. State the relation between marginal cost and average variable cost.
Or
Define revenue. State the relation between marginal revenue and average revenue.
Switch
