Answer: Option B. -> Demand and Supply
Answer: (b)
Capitalism generally refers to an economic system in which the means of production are largely or entirely privately owned and operated for a profit, structured on the process of capital accumulation.
In general, investments, distribution, income, and pricing are determined by markets. In capitalism, prices are decided by the demand-supply scale.
For example, higher demand for certain goods and services lead to higher prices and lower demand for certain goods lead to lower prices.

Answer: Option C. -> neither price axis, nor quantity axis
Answer: (c)
Unit elastic refers to An elasticity alternative in which any percentage change in price causes an equal percentage change in quantity.
In other words, any change in price, whether big or small, triggers exactly the same percentage change in quantity.
However, the unit price elastic demand curve does not touch either the price axis or quantity axis.

Answer: Option D. -> price of the commodity rises
Answer: (d)
The Law of demand states that the quantity demanded and the price of a commodity are inversely related, other things remaining constant.
That is, if the income of the consumer, prices of the related goods, and preferences of the consumer remain unchanged, then the change in the quantity of goods demanded by the consumer will be negatively correlated to the change in the price of the good.
When there is excess demand for the commodity the price starts rising and it continues to rise till equilibrium price is reached.

Answer: Option B. -> negative returns
Answer: (b)
The stages of Law of Variable Proportion are:
Stage 1: Increasing return;
Stage 2: Diminishing return; and
Stage 3: Negative Return.
In the third stage, the Marginal Product of the variable factor is zero. In this stage, the Total Product starts diminishing.

Answer: Option C. -> derived
Answer: (c)
There are 4 factors of production;
land,
labour,
capital and
entrepreneurship.
The demand for the factors of production is a derived demand. That means these factors of production are demanded because there is a demand for the end product they produce.

Answer: Option B. -> Study of sales of mobile phones by BSNL
Answer: (b)
Macroeconomics is a branch of economics in which a variety of economy-wide phenomena is thoroughly examined such as, inflation, price levels, rate of growth, national income, gross domestic product and changes in unemployment.
On the other hand, Microeconomics studies the behaviour of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.
So the study of sales of mobile phones by BSNL comes under microeconomics.

Answer: Option A. -> Coke and 7-Up will decrease
Answer: (a)
Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity, demanded of a good or service to a change in its price.
A decrease in the price of a good normally results in an increase in the quantity demanded by consumers because of the law of demand, and conversely, quantity demanded decreases when the price rises.
So, here the decrease in the price of Pepsi will increase in demand for it, while the demand for Coke and 7-Up will decrease because of no change in their price level.

Answer: Option B. -> Average Revenue is always equal to Marginal Revenue
Answer: (b)
Average revenue is the amount of money received by a firm per unit of output sold. Marginal revenue is the change in total revenue resulting from a small change in the quantity sold.
In a perfectly competitive market, a firm’s Average Revenue is always equal to Marginal Revenue.

Answer: Option D. -> when there is only one buyer and one seller of a product
Answer: (d)
A bilateral monopoly is a market consisting of a single seller (monopolist) and a single buyer (monopsonist).
For example, if a single firm produced all the copper in a country and if only one firm used this metal, the copper market would be a bilateral monopoly market.
The equilibrium in such a market cannot be determined by the traditional tools of demand and supply.

Answer: Option B. -> horizontal to ox-axis
Answer: (b)Under Perfect Competition, the firm faces a horizontal demand curve. It can sell any quantity desired at the market price, but cannot sell anything above the market price.