If the supply curve is a straight line parallel to the vertical axis (Y-axis),

the supply of the good is called _________. (Fill up the blank)

(a) Unitary Elastic Supply

(b) Perfectly Elastic Supply

(c) Perfectly Inelastic Supply

(d) Perfectly Elastic Demand

In the given figure X₁Y₁ and X₁Y₂ are Production Possibility Curves in two different periods T₁ and T₂ respectively for Good X and Good Y.

A₁ and A₂ represent actual outputs and P₁ and P₂ represent potential outputs respectively in the two time periods.

The change in actual output of Goods X and Y over the two periods

would be represented by a movement from _________ . (Fill up the blank)

(a) A₂ to P₂

(b) A₁ to P₂

(c) P₁ to A₂

(d) A₁ to A₂

OR

The Marginal Rate of Transformation (MRT) is constant. The Production

Possibility Curve, so formed, would be __________________ to the origin.

Under imperfect competition, Average Revenue (AR) remains _________Marginal Revenue (MR). (Fill up the blank)

OR

‘‘For a firm to be in equilibrium, Marginal Revenue (MR) and Marginal Cost (MC) must be _________ and beyond that level of output Marginal Cost must be _________.’’ (Fill up the blank)

Distinguish between positive economics and normative economics, with

suitable examples.

Explain the law of diminishing marginal utility, with the help of a hypothetical schedule.

OR

Elaborate the law of demand, with the help of a hypothetical schedule.