Economics

✅ ANSWER: A
Consumer surplus is highest in case of necessities. Consumer surplus happens when the price that consumers pay for a product or service is less than the price they’re willing to pay.

✅ The correct answer is A.
If the marginal (additional) opportunity cost is a constant then the PPC would be Straight line. Ppc constant means goods are perfect substitute if they are perfect substitute then that curve is a straight line

✅ The correct answer is C.
In the case of a Giffen good, the demand curve will be Upward to the right. A Giffen good has an upward-sloping demand curve, which is contrary to the fundamental law of demand, which states that the quantity demanded for a product falls as the price increases, resulting in a downward slope for the demand curve.

✅ The correct answer is D.
Variable cost increases continuously with the increase in production. Variable cost varies at different level of output, this implies that when the output of a particular firm is at zero, the variable cost will be zero and when there is increase in production of output, there will also be a corresponding increase in the variable cost.

✅ The correct answer is B.
If the price of ‘X’ rises by 10 percent and the quantity demanded falls by 10 percent, ‘X’ has Unitarily elastic demand.

✅ The correct answer is A.
Under Perfect competition market condition, firms make normal profits in the long run. In sum, in the long-run, companies that are engaged in a perfectly competitive market earn zero economic profits.

✅ The correct answer is A.
Agricultural goods market depicts characteristics close to Perfect competition. A perfectly competitive market has the following characteristics: There are many buyers and sellers in the market. Each company makes a similar product. Buyers and sellers have access to perfect information about price.

✅ The correct answer is B.
Union leaders are in better position to bargain for higher wages if demand for labour is Inelastic. The capacity of trade unions to raise wages in a particular industry depends on the elasticity of demand for labour.

✅ The correct answer is C.
Human wants are Innumerable. With the passage of time and human progress, we find a marked growth in the number and variety of wants. Modern man has countless wants.

✅ The correct answer is D.
Mobility of labour Increases efficiency of labour and also increases division of labour.