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CUET Economics 2025 PYQs13 May Shift 1. Free, no login required.

Micro

past year questions, CUET Economics 2025 13 May Shift 1

Production & Costs

past year questions, Micro, CUET Economics 2025 13 May Shift 1

Medium

The collection of all possible combinations of the goods and services that can be produced from a given amount of resources and a given stock of technological knowledge is called?

Solution

✅ Correct Option: 3

Option 1: Production Possibility Frontier -> This is the boundary curve showing maximum production combinations, not the entire collection.

Option 2: Isoquant Curve -> Shows input combinations for the same output level, not related to output combinations.

Option 3: Production Possibility Set -> The complete collection of all feasible production combinations.

Option 4: Isocost Line -> Shows input combinations with the same cost, not related to output possibilities.

Hence, Production Possibility Set -> The Production Possibility Set encompasses ALL possible combinations of goods and services that can be produced given available resources and technology. This includes every point on and inside the Production Possibility Frontier (PPF). The PPF itself is just the boundary of this set, representing maximum efficient production, while the entire set includes efficient points (on the frontier) and inefficient points (inside the frontier). The term 'collection' or 'set' refers to the complete range of feasible production possibilities, not just the optimal boundary. -> correct

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The point of minimum average cost at which the supply curve cuts the long run average cost curve is called?

2025: 22 May Shift 1

In long run as long as average cost is falling, marginal cost must be less than the .......

2025: 13 May Shift 2

According to the law of variable proportions, the marginal product of an input initially rises and then after a certain level of employment, it starts falling. The MP curve therefore looks like:

2025: 3 June Shift 1

Chronologically, arrange the following statements in the context of shape of AP curve.

(A) MP starts falling, the AP continues to rise as long as MP remains higher than AP.

(B) At the first level of output, the MP and the AP are the same.

(C) MP fall sufficiently, its value becomes less than the AP and the AP also falls.

(D) MP rises, AP being the average of marginal products, also rises, but rises less than MP.

Choose the correct answer from the options given below:

2025: 30 May Shift 2

Choose the correct statements from the options given below in terms of the shapes of the short run cost curves.

(A) Average fixed cost curve is a rectangular hyperbola.

(B) Total fixed cost is horizontal straight line.

(C) Average variable cost is upward sloping.

(D) Marginal cost is U shaped.

Choose the correct answer from the options given below:

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