Posted by
Anjali Kaur
on
Dec 15, 2021
Practice Test No – 8
Practice Test No – 8, is based on microeconomics as per the CBSE curriculum.
Let’s understand this topic. But before that, please subscribe to our newsletter. It’s free of cost.
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1. Define opportunity cost.
Answer. The cost of the next best alternative.
2. At what level of production is total cost equal to total fixed cost?
Answer. At 0 level of output.
3. State one example of positive economics.
Answer. India’s population level is rising.
4. Define fixed cost.
Answer. The cost remains fixed(same) irrespective of the level of output.
5. When the average product is maximum then marginal product is?
Answer. More than AP.
6. When the TFC of producing 100 units is Rs 30 and the AVC is Rs. 3, TC will be?
Answer. For this question, first, we will find TVC, using the formula; TVC = AVC X Q
TVC = 3 X 100 = 300
TC = 300+30 = 330
7. Which of the following is a statement of normative nature in economics?
a. Economics is the study of choices
b. Government should be concerned with how to reduce unemployment
c. According to an estimate, in spite of a severe shortage, more than 10% of houses in Indian cities are lying vacant
Answer. b.
b. Government should be concerned with how to reduce unemployment
Trick; remember normative statements always contains ‘Should be’
8. Define marginal physical product.
Answer. Change in the total physical product by a change in output.
9. A firm is operating with TVC of Rs 500 when 5 units of the given output are produced and the TFC are Rs 200, what will be ATC of producing 5 units of output?
Answer.
10. When a good is considered a normal good?
Answer. When the demand for a good increase with the income of the consumer, such goods are called normal good. For example, if the income of the consumer rises, then the demand for superior quality goods rises.
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