I.Com Part 1 Principles of Economics Chapter 9 National Income Short Question Preparation

11th Class Principles of Economics
Chapter 9 National Income Preparation

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11th Class Principles of Economics Chapter Wise Preparation

Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15

Online Short Questions For Chapter 9 "ICOM Part 1 Economics English Medium Chapter 9 Short Questions Preparation "

Try The Short Questions For ICOM Part 1 Economics English Medium Chapter 9 Short Questions Preparation

Total Questions10
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Principles of Economics ( English Medium) - ICOM Part 1 Economics English Medium Chapter 9 Short Questions Preparation

Question # 1

Define 'normal profit' in PC.

Ans 1: Firm will earn normal profits when total revenues and total costs are equal.
(TR = TC)

Question # 2

Describe firm's equilibrium under perfect competition in long run and draw its diagram.

Ans 1: In long-run mostly firms earn normal profit because of the reasons.
1. In long run the number of firms in the industry can change.
2. In case of losses, some of the existing firms leave the industry.

Question # 3

What are the conditions of firm's equilibrium under PC and monopoly or profit maximalization ?

Ans 1: There are two conditions of firm's equilibrium :
Necessary Condition:
1. Marginal cost should equal to marginal revenue, (MC = MR)
Sufficient Condition:
2. Marginal Cost curve must cut marginal revenue curve from below.

Question # 4

How many situations of firm's equilibrium are there under perfect competition in short-run.

Ans 1: There are four main situations of firm's equilibrium under perfect competition:
1. Super normal profit
2. Normal profit.
3. Normal loss.
4. Heavy loss.

Question # 5

Define an industry ?

Ans 1: The combination of all the firms producing the same commodity is called an industry. For example sugar industry, cotton industry etc.

Question # 6

Define normal 'loss' and draw the diagram in perfect competiton.

Ans 1: Firm will face loss when total revenues are less than total costs.
(TR < TC) OR (P < AC)

Question # 7

What is meant by optimum level of output for a firm ?

Ans 1: The level of output where marginal production is maximum and marginal cost is minimum is called optimum level of production.

Question # 8

Define equilibrium of the firm.

Ans 1: Equilibrium means a situation in which two opposite forces are exactly equal. The basic aim of the firm is to get maximum profit. Firm will expand its output when higher profits are expected.

Question # 9

Give four demerits of monopoly.

Ans 1: There are following demerits of monopoly:
1. Consumer's exploitation.
2. Increase in unequal distribution of wealth.
3. Misallocation of resources.
4. Lack of innovations.

Question # 10

How many approaches are used to explain the equilibrium of the firm ?

Ans 1: There are two approaches.
1. Total revenue and Total Cost approach.
2. Marginal Revenues and Marginal Cost approach.

Submit

Prepare Complete Set Wise Questions For Chapter 9 "ICOM Part 1 Economics English Medium Chapter 9 Short Questions Preparation "

Set 1

10 Questions
Start

ICOM Part 1 Economics English Medium Chapter 9 Short Questions Preparation - Set 1

Question # 1

Define 'normal profit' in PC.

Ans 1: Firm will earn normal profits when total revenues and total costs are equal.
(TR = TC)

Question # 2

Describe firm's equilibrium under perfect competition in long run and draw its diagram.

Ans 1: In long-run mostly firms earn normal profit because of the reasons.
1. In long run the number of firms in the industry can change.
2. In case of losses, some of the existing firms leave the industry.

Question # 3

What are the conditions of firm's equilibrium under PC and monopoly or profit maximalization ?

Ans 1: There are two conditions of firm's equilibrium :
Necessary Condition:
1. Marginal cost should equal to marginal revenue, (MC = MR)
Sufficient Condition:
2. Marginal Cost curve must cut marginal revenue curve from below.

Question # 4

How many situations of firm's equilibrium are there under perfect competition in short-run.

Ans 1: There are four main situations of firm's equilibrium under perfect competition:
1. Super normal profit
2. Normal profit.
3. Normal loss.
4. Heavy loss.

Question # 5

Define an industry ?

Ans 1: The combination of all the firms producing the same commodity is called an industry. For example sugar industry, cotton industry etc.

Question # 6

Define normal 'loss' and draw the diagram in perfect competiton.

Ans 1: Firm will face loss when total revenues are less than total costs.
(TR < TC) OR (P < AC)

Question # 7

What is meant by optimum level of output for a firm ?

Ans 1: The level of output where marginal production is maximum and marginal cost is minimum is called optimum level of production.

Question # 8

Define equilibrium of the firm.

Ans 1: Equilibrium means a situation in which two opposite forces are exactly equal. The basic aim of the firm is to get maximum profit. Firm will expand its output when higher profits are expected.

Question # 9

Give four demerits of monopoly.

Ans 1: There are following demerits of monopoly:
1. Consumer's exploitation.
2. Increase in unequal distribution of wealth.
3. Misallocation of resources.
4. Lack of innovations.

Question # 10

How many approaches are used to explain the equilibrium of the firm ?

Ans 1: There are two approaches.
1. Total revenue and Total Cost approach.
2. Marginal Revenues and Marginal Cost approach.

Submit

11th Class Principles of Economics Chapter 9 Preparation

Short Questions
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I.Com Part 1 Principles of Economics Chapter 9 National Income Short Question Preparation

11th Class Principles of Economics Chapter 9 National Income Preparation

11th Class Principles of Economics Chapter Wise Preparation

Online Short Questions For Chapter 9 "ICOM Part 1 Economics English Medium Chapter 9 Short Questions Preparation "

Principles of Economics ( English Medium) - ICOM Part 1 Economics English Medium Chapter 9 Short Questions Preparation

Define 'normal profit' in PC.

Describe firm's equilibrium under perfect competition in long run and draw its diagram.

What are the conditions of firm's equilibrium under PC and monopoly or profit maximalization ?

How many situations of firm's equilibrium are there under perfect competition in short-run.

Define an industry ?

Define normal 'loss' and draw the diagram in perfect competiton.

What is meant by optimum level of output for a firm ?

Define equilibrium of the firm.

Give four demerits of monopoly.

How many approaches are used to explain the equilibrium of the firm ?

Prepare Complete Set Wise Questions For Chapter 9 "ICOM Part 1 Economics English Medium Chapter 9 Short Questions Preparation "

Set 1

ICOM Part 1 Economics English Medium Chapter 9 Short Questions Preparation - Set 1

Define 'normal profit' in PC.

Describe firm's equilibrium under perfect competition in long run and draw its diagram.

What are the conditions of firm's equilibrium under PC and monopoly or profit maximalization ?

How many situations of firm's equilibrium are there under perfect competition in short-run.

Define an industry ?

Define normal 'loss' and draw the diagram in perfect competiton.

What is meant by optimum level of output for a firm ?

Define equilibrium of the firm.

Give four demerits of monopoly.

How many approaches are used to explain the equilibrium of the firm ?

11th Class Principles of Economics Chapter 9 Preparation

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11th Class Principles of Economics
Chapter 9 National Income Preparation