INTERNAL-I

1.Which of the following is a demand function?

• Q+4P=20

• Q=35+3P

• Q-2P-15=0

• 5P-Q=4

2. 2. Which of the following formulas is correct?

• AVC = (TC-FC)/Q

• AVC = FC/Q

• AVC = TC/Q

• AVC = (MC*Q-FC)/Q

3. 3. When the RBI conducts open-market operations to increase the money supply, it ___________ government bonds from the public.

4. 4. The budget line takes a leftward shift when the price of a good increases.

• TRUE

• FALSE

5. 5. The marginal product of fixed factor in Stage-I of law of variable proportions is positive.

• TRUE

• FALSE