The shape of the average revenue curve under perfect competition would be ______Horizontal line__ _. (Fill up the blank)

Shift from Point A on Production Possibility Curve X1₁Y₁to Point B on X₂Y₂in the given figure indicates : (Choose the correct alternative)

Mention any two examples of the implicit cost incurred by a firm.

OR

Define variable cost.

The coefficient of price elasticity of supply of a good is 3. It is known as

__________ . (Choose the correct alternative)

Discuss briefly the central problem of ‘‘How to produce’’.

OR

Classify the following statements into positive economics or normative economics, with suitable reasons :

(a) The autonomy of the central bank of a country should be maintained as per the law.

(b) Nominal Gross Domestic Product (GDP) is calculated based on ‘current year prices'.