Left Out Qus-eco 3

1. A.C.> A.R

4

1. Two firms

2. Monopoly

2

2. Multiple products

3. Excess capacity

5

3. Single products

4. Experimental pricing

6

4. Low cross elasticity of demand 5. High cross elasticity of demand 6. Trial and error method

The production function can be explained by :-

a)

1Law of variable proportions 1Laws of returns to scale 1Optimum combinations of inputs Total Revenue & Total Cost curve

b ) c) d )

The effective solution to the problem of internationalizing of externality involves :-

a)

Government action Private action providing correctives Externality taxes Subsidies by the government

b ) c) d )

Marks : 2 24.

Economists call all human resources mental, physical, inherited and acquired as :-

a)

1Entrepreneur Labour Capital Assets

b ) c) d )

The phenomenon of waste of resources is also termed as involuntary un employ ment of resources

True False

33.

The subject matter of Micro economics includes the study of :-

a)

1An individual consumer 1Particular market for a given commodity Operation of a firm 1Major economic issues, problems & policies

b ) c) d )

Marks : 2 36.

Effective Demand covers :-

a)

Consumption outlay for the households Investment outlay in the private sector Government’s spending for consumption as well as investment How a consumer effectively demand the good in the market

b ) c) d ) . Diamond

1. Changes in quantity demanded

2. Variation in demand

2. ED > 1

3. Index number

3. Snob Appeal

4. Rigid demand

4. Statistical device 5. Perfectly elastic demand 6. E.D. = 0

Marks : 2 44.

The city of Ludhiana has developed a big market for :-

a)

Textiles Silk Bangles 1Hosiery

b ) c) d ) Managerial Economics

1

1. Prescriptive in nature

2. Resources

5

2. Insatiable

3. Division of society’s output of goods and services

3

3. The theory of distribution

4. Motor cars

4

4. Tangible goods

5. Wants

2

5. Alternative uses

Public utilities such as railway or cooking gas supply companies

4

1. expenditure is incurred by the firms on cross transportation

2. Monopsony is the monopoly

2

2. from buyer’s side

3. In oligopoly market, price

5

3. to enable it to operate at the lowest cost possible and maximise efficiency

4. Under monopolistic competition

1

4. are allowed under the law to make price discrimination

5. The price policy of a public enterprise should be such as

3

5. tends to be rigid at the kink on the demand curve