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STD-XII.Com, SUBJECT- Economics, , VIG ENGLISH SCHOOL, PRE-Semester-I 2021-22, , F.M-80, Time- 1Hrs:30 Min, , General Instruction:, All Questions are compulsory, Each questions/subpart of a question carries 1 mark., 1 . Budget set includes:, a) All those combinations of two goods which a consumer already possesses, b ) All those combinations of two goods which a consumer cannot afford, c) All those combinations of two goods which a consumer is willing to buy, d) All those combinations of two goods which a consumer can afford, 2. In a typical demand schedule, quantity demanded:, a) Varies directly with price, b) Varies proportionately with price, c) Varies inversely with price, d) Is independent of price, 3. “Salary of Permanent staff” is which type of cost?, a) Variable and Implicit Cost, b) Fixed and Implicit Cost, c) Fixed and Explicit Cost, d) Variable and Explicit Cost, 4. Nishant, Tavleen and Manas are confused with the formula for deriving TC:, Nishant says: TC=TVC+TFC, Tavleen says: TC=AC x Output, Manas says: TC=∑MC + TFC, Identify who amongst them is correct., a) Nishant, b) Manas, c) Tavleen, d) All of them, 5. In case of Perfect Competitions, price is determined at:, a) Equilibrium price of the firm, b) Equilibrium price of the industry, c) Equality between MR and MC, d) None of these, 6. In __________ , a firm faces an infinitely elastic demand curve which means that the firm can sell any, amount of a good at the prevailing market price., a) Oligopolistic market, b) Monopoly market, c) Perfect competition, d) Monopolistic competitions, 7. The shape of total fixed cost curve is:, a) U- shaped, b) Downward sloping, c) Inversely S- Shaped, d) Horizontal straight line parallel to x-axis
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8. When AC is rising MC is:, a) Equal to AC, b) More than AC, c) Less than AC, d) Constant, 9. MC curve intersects AC curve at its ________ point and AVC curve at its ______points., a) Maximum, Minimum, b) Minimum, Maximum, c) Minimum, minimum, d) Maximum, maximum, 10. A consumer buys 200 units of at a price of Rs5 per unit. When the price changes, he buys only 100, units. If price elasticity of demand is 2, the changed price will be:, a) Rs5.75, b) Rs6.25, c) Rs6.75, d) Rs7.25, 11. In case of ________ , supply falls at the same price., a) Decrease in supply, b) Contraction in supply, c) Increase in supply, d) Expansion in supply, 12. when price of sugar is Rs.5per kg, its demand is 50kg. when price rises by Rs 5 per kg, its demand, falls by 10kg. Calculate the elasticity of demand., a) - 0.2, b) -2.5, c) 1.5, d) 1, 13. Expansion of Demand is associated with:, a) Rise in price, Rise in quantity demanded, b) Fall in price, Fall in quantity demanded, c) Fall in price, Rise in quantity demanded, d) Rise in price, Fall in quantity demanded, 14. In case of cardinal utility approach, utility is measured in:, a) Rupees, b) Ranks, c) Utils, d) None of these, 15. In case of single commodity, consumer‟s equilibrium is achieved when:, a) MUx > Px, b) MUx < Px, c) MUx ≠ Px, d) MUx = Px, 16.MUx of X is 40 and MUy of Y is 30. It the price of Y is rupees 9, then price of X at equilibrium will, be________., a) Rupees 9, b) Rupees 30
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c) Rupees 15, d) Rupees 12, 17. As per Ordinal Approach :, a) Measurement of utility is not possible through money, b) Measurement of utility is possible but it can not be ranked, c) Measurement of utility is not possible in cardinal numbers but it can be ranked, d) None of these, 18. Mollie derives total utility of 10 utils after having 4 mangoes and total utility on consuming 5, mangoes is 9. What is her marginal utility for the 5th mango?, a) +1 util, b) 0 utils, c) -1 util, d) 9 utils, 19. Which formula is incorrect to determine the value of TC:, a) TC=TVC+TFC, b) TC=∑MC, c) TC= AC x Output, d) TC=∑MC+TFC, 20. Jaya, Aastha and Komal are three friends talking about the relationship between marginal cost (MC), and average cost(AC)., Jaya says,”MC curve intersect AC curve from above”, Aastha says,”MC curve does not intersect AC curve at all”, Komal says,” MC curve intersect AC curve from below”, Out of the three, who is correct?, a) Aastha, b) komal, c) Jaya, d) All of them, , 21. A firm producing 6 units of output has average total cost of rupees 150 and has to pay rupees 240 to, its fixed factors of production . In the given case, average variable cost at 6 units of output will be:, a) Rupees150, b )Rupees900, c) Rupees110, d) Rupees1,440, 22. If resources can be put only to a particular use, then opportunity cost is:, a) Applicable and quantifiable, b) Applicable but not quantifiable, c) Not applicable at all, d) None of these, 23. A firm‟s average fixed cost(AFC) is rupees 20 at six units of output. What will be AFC at four unit, output?, a) Rupees20, b) Rupees30, c) Rupees40, d) Rupees50
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24. MC curve cuts the AVC and ATC curves:, a) From above, b) From below, c) Either (a) or (b), d) Neither (a) or (b), 25. When AC > MC, then MC can:, a) Fall, b) Rise, c) Both (a) and (b), d) None of these, 26.If TR = Total Revenue and Q = Quantity sold , then TR ÷Q refers to :, a) Zero revenue, b) Average Revenue, c) Marginal revenue, d) None of these, 27. At any given level of a firm‟s output , marginal revenue is the revenue earned by selling :, a) Entire output, b) Additional unit of output, c) Both (a) and (b), d) Neither (a) nor (b), 28. A balloon seller has decided that he will sell all his balloons at a fixed price of rupees10 each. In, such a case, TR curve will be :, a) Horizontal straight line parallel to the X- axis, b) Vertical straight line parallel to the Y- axis, c) Positively sloped straight line passing from the origin, d) Downward sloping straight lines, 29. If total revenue is rupees1,00,000 when 20,000 units are sold, then the average revenue is equals to:, a) Rupees1,00,000, b) Rupees20,000, c) Rupees5, d) Rupees1,20,000, 30. Price Elasticity of supply of a good is 2. It shows that:, a) When price falls by 1% ,supply falls by 2%, b) When price rises by 1% supply rises by 2%, c) When supply falls by 1% price rises by 2%, d) Either (a) or (b), 31. In case of less elastic supply, supply curve:, a) Makes an intercept on the positive X-axis, b) Is a vertical straight line parallel to the Y-axis, c) Makes an intercept on the positive Y-axis, d) Is a horizontal straight line parallel to the X- axis, 32.In perfect competitions, since the firm is a price –taker ,_________curve is a horizontal straight line, parallel to the X- axis., a) Marginal cost, b) Total cost
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c) Total revenue, d) Marginal revenue, 33. Which of the following is not a characteristic of a price taker firm ?, a) TR=P x Q, b) AR= price, c) Negatively sloped demand curve, d) Marginal revenue =price, 34. In case of perfect competition, AR curve is:, a) Downward sloping, b) Positively sloped, c) Horizontal straight line parallel to the X- axis, d) Vertical straight line parallel to the Y-axis, 35. Railways is an example of, a) Perfect competitions, b) Monopolistic Competitions, c) Monopoly, d) Oligopoly, 36. Homogeneous Products is a characteristic of:, a) Perfect competition only, b) Perfect oligopoly only, c) Both (a) and (b), d) None of the above, 37. Monopolistic competitions constitutes:, a) Single firm producing close substitutes, b) Many firms producing close substitutes, c) Many firms producing differentiated substitutes, d) Few firms producing differentiated substitutes, 38. „A few big sellers‟ is a characteristic of:, a) Perfect competitions, b) Monopolistic competitions, c) Oligopoly, d) None of These, 39. There will be a _________ in the demand curve of cars with an increase in the price of petrol:, a) Rightward shift, b) Upward movement, c) Leftwards shift, d) Downward movement, 40. The supply for a good is 50 unit at a price of Rs10. When price rises by Rs5, supply also rises by 50, units. Calculate price elasticity of supply., a) Es=2.5, b) Es=1.5, c) Es=1, d) Es=2, 41. The Indian Government imposed heavy taxes on commodity to reduce its consumption by the public ., such heavy taxes will decrease for the commodity only when :
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a) Ed=0, b) Ed>1, c) Ed<1, d) Ed=1, 42. The demand for a meals at a medium-priced restaurant is elastic . If the management of the restaurant, is considering raising prices, it can expect a relatively:, a) Proportionately large fall in quantity demand, b) No change in quantity demanded, c) Proportionately small fall in quantity demanded, d) Infinite change in quantity demanded, 43. All the curves except ___________ are U shaped curve:, a) Average fixed cost curve, b) Average variable cost curve, c) Average cost curve, d) Marginal cost curve, 44. Which of the following is true with respect to relationship between AC and MC?, a) When MC=AC, AC falls, b) AC curve intersects MC curve at minimum MC, c) MC curve intersect AC curve at minimum AC, d) When MC=AC, ATC rises, 45. Which of the following statement is True ?, a) ATC=AFC-AVC, b) AVC=AFC+ATC, c) AFC=ATC+AVC, d) AFC=ATC-AVC, 46. The average fixed cost at 4 units of output is Rupees 20 . Average variable cost at 5 units of output is, Rupees 40 . Average cost of producing 5 units is:, a) Rupees20, b) Rupees40, c) Rupees56, d) Rupees 60, 47. In case of ____________, supply curve is a vertical straight line parallel to the Y-axis., a) Perfectly elastic supply, b) Unitary elastic supply, c) Perfectly inelastic supply, d) Less elastic supply, 48. Which of the following does not cause shift of supply curve of a good?, a) Price of input, b) Price of the good, c) Goods and services tax, d) Subsidy, 49. A seller cannot influence the market price under, a) Perfect competition, b) Monopoly, c) Monopolistic competition, d) All of the above
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50.There will be a __________ , in the demand curve of cars with an increase in the price of petrol :, a) Rightward shift, b) Upward shift, c) Leftward shift, d) Downward shift, 51. There is a sudden change in climatic conditions resulting in hot weather. Assuming no change in the, price of the cold drink , it will lead to:, a) Upward movement along the same market demand curve, b) Downward movement along the same market demand curve, c) Rightward shift in the market demand curve, d) Leftward shift in the market demand curve, 52. Expansion and contraction in demand are caused by :, a) Change in price of the given good, b) Change in income, c) Change in price of related goods, d) Change in population, 53. The price elasticity of supply of a commodity is 2.5. At a price of Rs.5 per unit, its quantity supplied, is 300 units. Calculate its quantity supplied at a price of Rs.4 per unit., a) 250 units, b) 150 units, c) 200 units, d) 300 units, 54. If more is demanded at the same price or same quantity at a higher price, this fact of demand is known, as:, a) Extension of demand, b) Increase in demand, c) Contraction of demand, d) Decrease in demand, 55. How is TU derived from MU?, a) TU =∑MU, b) TU= U1+U2+U3_______+ UN, c) Both (a) and (b), d) None of these, 56. The total utility derived by Nagma by eating 6 apples is 300 utiles . Marginal Utility of the 7th apple is, 30 utils . The total utility for 7 apples will be _______ utils., a) 330, b) 270, c) 300, d) 30, 57. Based on the data given in the table, the AFC and AVC, Units of output, 0, 1, Total cost Rs., 10, 30, I AFC for 0, 1, 2 units will bea), , 10, 5, , 2, 45
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b), c), d), , , 20, 15, , 30, 22.5, , 20, 3, , II. AVC for 0, 1, 2 units will bea. 5, 10, 15, b. -, 30,15, c. 20, 17.5, 15, d. 0, 17.5, 15, 58. Based on the data given in the table, calculate the TC and MC, Output (units), 0, 1, 2, AC, 18, 11, TC, 12, MC, I), a., b., c., d., , TC will be, 18, 22, 27, 22, 18, 27, 01, 22, 27, 18, 09, 27, , II), a., b., c., d., , MC will be, 4,5,6, 6,5,4, 6,4,5, 4,6,5, , 59. Based on the data given in the table below, find the product pricing., Output (units), 0, 1, 2, TR Rs, 0, 12, 24, , 3, 9, , 3, 36, , 4, 48, , The product price facing the firm isa. Rs6, b. Rs8, c. Rs10, d. None of the above., 60. Hrittik manufactures bikes in India. He then started manufacturing high segment bikes, but he faced, extreme cut-throat completion in the industry. Then, he decides to form a cartel with other manufacturers, to eliminate competition and earn larger profits by setting high prices., I), a., b., c., d., II), a., b., c., d., III), a., , Identify the market structure discussed above., Perfect competition, Monopoly, Oligopoly, Monopolistic competition, The collective decision of the firm‟s group to avoid competition is known as:, Monopoly, Monopolistic competition, Perfect competition, Cartel, State the features of above market structure discussed, Large number of buyers
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b. Price discrimination is possible, c. Indeterminateness of demand curve, d. None of the above., 61. Marshall says that “ the additional benefit which a person derives from a given increases in his stock, of a thing diminishes with every increases in the stock that he already has”., I), a., b., c., d., II), a., b., c., d., III), a., b., c., d., , Identify the concept stated in the above lines., Law of diminishing marginal utility, Law of Equi-marginal utility, Cardinal utility Analysis, None of the above, Which statement is correct in the given context?, If the quality of goods increase or decrease, the law of diminishing marginal utility may not be, proven true., If there comes a substantial break in the consumption of goods, the actual concept of diminishing, marginal utility will be altered., Only a, Both (a) and (b), Who propounded this law, Gossen, Adam smith, Chapman, Hicks, , 62. The firm in Shivam industry observe a 10% increase in the productivity of labour, but to get there, they had to increase the cost of labour by 5%., I), a., b., c., d., , What should be expected to happen in the output market as result of this development?, The supply should increase., The supply should decrease., The supply should remain unchanged., None of these., , II), a., b., c., d., , Which one is the correct option regarding exceptions of law of supply?, Change in business, Competition, Both a and b, Only a, , III), Which of the following statement is true about law of supply., a. The “law of supply” states that as a price rises, quantity supplied also rises., b. If the marginal cost of producing a goods is higher at high levels of output than at low levels of, output, then the supply curve for that good is upward sloping., c. Both a and b, d. Neither a nor b
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63., , I), a., b., c., d., , What is the following graph called?, Consumer‟s equilibrium, Producer‟s equilibrium, Indifference curve map, None of the above, , II), a., b., c., d., , In the diagram D represent, Consumer equilibrium, Tangency point, Both a and b, None of the above., , III), a., b., c., d., , U3 represent, Higher level of satisfaction, Lower level of satisfaction, Equal level of satisfaction, All of the above., , 64 . What will be the elasticity of demand if the flatness of the demand curves increases?, , a., b., c., d., , Higher, Lower, Equals to zero, Equals to infinity
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65., , a., b., c., d., , Extension of supply, Contraction of supply, Increase in supply, Decrease in supply, , 66., , a., b., c., d., , Marginal product can be zero and negative but average product is never zero., Marginal product can never be zero and negative but Average product can be zero., Average product falls when marginal product > Average product, None of the above., , I., a., b., c., d., II., a., b., c., d., , In the fig. The Floor price is:, OP1, OP2, OP3, None of the above, In the fig. Ceiling price is, OP1, OP2, OP3, None of the above., , 67.
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68. In the following figure, AB is a line of:, , a., b., c., d., , Average Revenue, Marginal Revenue, Both a and b, None of above, , 69. The following pictures describes the producer‟s in which market structure?, , a., b., c., d., , Perfect competition, Monopolistic competition, Monopoly, Oligopoly, , *************************************************************************************