If the Marginal Revenue curve is parallel to the X-axis, the price of the

commodity would be ____________ . (Choose the correct alternative)

In the given figure X1Y1 and X2Y2 are Production Possibility Curves in two different time periods T1 and T2 respectively. A1 and A2 represent actual outputs in T1 and T2 periods respectively. P1 and P2 are potential outputs in T1 and T2 periods respectively.

The change in potential production over the two periods would be

represented by a shift from _________ _. (Choose the correct alternative)

State any two examples of variable cost.

OR

State any two examples of fixed costs.

‘‘Problem of resource allocation would not arise if resources do not have alternative uses.’’ Defend or refute the statement with valid arguments.

OR

Discuss briefly the meaning of positive economics and normative economics, with suitable examples.

Explain the law of diminishing marginal utility, using a suitable diagram or a schedule.