MCQ Economics Class 12 Chapter 2 Theory of Consumer Behavior Microeconomics Advertisement MCQ’s For All Chapters – Microeconomics Class 12th 1. If due to fall in price, total expenditure (Ed) when demand curve is parallel to Y-axis?A case of inferior goodPrice elasticity of demand is less than unityPrice elasticity of demand is greater than unityPrice elasticity of demand is infinityQuestion 1 of 162. A consumer demands 5 units of a commodity at the price of ₨4 per unit. He demands 10 units when the price falls to Rs3 per unit. Price elasticity of demand is equal to :3421.5Question 2 of 163. Using total expenditure method , what is Ed when price and demand are as under :Ed=1Ed<1Ed>1Ed=0Question 3 of 164. Per unit production of the variable factor is calledTotal productAverage productMarginal productNone of theseQuestion 4 of 165. Which of the following equations is correct ?(AP= Average product)(Q= Output)(L=Variable factor)(MP= Marginal Product)AP=Q/LMP=Q/∆LMP= ∆Q/LNone of theseQuestion 5 of 166. Which of the following equations is correct ?MP= TPn-TPn-2MP=AP/LMP=TP/LMP=∆TP/∆LQuestion 6 of 167. Variable proportions type production function exists:When with change in the level of output there is change in factor ratioWhen it is possible to increase output by increasing the application of the variable factorWhen scale of production changes with change in the level of outputBoth (a) and (b)Question 7 of 168. What will be the state of total output when marginal product turns negative?Total output will begin to fallTotal output will begin to riseTotal output will remain constantNone of theseQuestion 8 of 169. When average product (output) increase, marginal product is :Equal to average productGreater than average productLess than average productZeroQuestion 9 of 1610. Which one of the following leads to the law of variable proportions ?Some factors are constantSome factors are more efficient than otherSpecialization of factorsNone of theseQuestion 10 of 1611. In case of diminishing returns :Total product increases at diminishing rateTotal product increases at increasing rateMarginal product diminishesBoth(a) and (c)Question 11 of 1612. When more and more units of a variable factor are combined with the fixed factor, the resulting law is called :Law of variable proportionsLaw of increasing Returns to ScaleLaw of Decreasing Return to ScaleLaw of Constant Return ScaleQuestion 12 of 1613. What does break- even point indicate?TR>TCTRTR=TCTC=0Question 13 of 1614. Difference between TR and TC is maximum whenAR=MRMR=MCMR=ACMC=ACQuestion 14 of 1615. Under perfect competition, for the producer to be in equilibrium :AR=MR=AC and AC must be risingAR=MR=MC and MC must be fallingAR=MR=MC and MC must be risingAR=MR=TC and TC must be risingQuestion 15 of 1616. In the context of producer’s equilibrium which one is wrongMinimum difference between TR and TCMR=MCProducer gets maximum profitIn equilibrium situation producer has no tendency to change his production.Question 16 of 16 Loading...
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