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.

You can also subscribe to my YouTube Channel. You can also buy my book at Amazon: https://amzn.in/bEGJyKF

Disclosure: Some of the links on the website are ads, meaning at no additional cost to you, I will earn a commission if you click through or make a purchase. Please support me so that I can continue writing great content for you.

## 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.

## 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

## c. According to an estimate, in spite of a severe shortage, more than 10% of houses in Indian cities are lying vacant

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.

## 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.

Happy Learning!

Disclosure: Some of the links on the website are ads, meaning at no additional cost to you, I will earn a commission if you click through or make a purchase. Please support me so that I can continue writing great content for you. Subscribe

Subscribe
Notify of
Inline Feedbacks

### Other posts you might like...

Learn with Anjali started because there wasn't an easy-to-consume resource to help students with their studies. Anjali is on single-minded mission to make you successful!