1. What is meant by Economics? …

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1. What is meant by Economics?
2. _______ refer to those cost which do not vary directly with the level of output.
3. When price falls with rise in output ,TR is ________ when MR is 0.
a. Maximum
b. Minimum
c. Zero
d. None of these
4. In case of perfect competition, a firm is in equilibrium when :
a. MC = MR
b. MC cuts MR from below
c. MC is rising when it cuts MR
d. All of these
5.Define short run production function.
6.List three determinants affecting market demand.
7. Explain the central problem of what to produce in an economy.
8.Give any three differences between Micro Economics and Macro Economics.
9. Discuss the difference between expansion in demand and increase in demand using
diagrams.
10. What is perfect competition? Briefly explain any three features of it.
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