Deck 6: Economics and Linear Programming: Understanding Concepts and Terminologies

Question 1

If your income doubles and the prices of the goods you buy double, then your demand for these goods will likely ________

A)increase
B)not change
C)decrease
D)shift

Answer 1

not change

Question 2

Football socks are found to have a cross-elasticity of demand of ?2 with respect to product Y. Which of the following products is most likely to be product Y:

A)Cricket boots
B)Tennis shoes
C)Tennis socks
D)Football boots

Answer 2

Football boots

Question 3

The process of finding relative maximum or minimum of a function is known as :

A)optimization
B)minimisation
C)maximisation
D)any of these

Answer 3

optimization

Question 4

A ____ is a point at which a function is at a relative maximum or minimum:

A)plateau
B)relative extremum
C)inflection
D)critical value

Question 5

The value of Lagrange multiplier ? gives the approximate change in the objective function caused by a small change in the:

A)constant of the constraint
B)objective function
C)variables in the constraint
D)any of these

Question 6

The first derivative measures the rate of change or ____ of a function:

A)intercept
B)convexity
C)slope
D)concavity

Question 7

For a cost function TC = 3Q2 + 7Q +12, MC is :

A)6Q
B)6Q + 7
C)3Q + 7
D)undefined

Question 8

MR is :

A)the second order derivative of TR
B)the first order derivative of TC
C)the first order derivative of TR.
D)the first order derivative of TR

Question 9

In optimisation, with the first order derivative equal to ___ and the second order derivative ___ the function is at a maximum.

A)0, 0
B)0, < 0
C)0, > 0
D)> 0, 0

Question 10

When we optimise a function, with the first order derivative equal to ___ and the second order derivative ___ the function is at a relative minimum.

A)0, 0
B)0, < 0
C)0, > 0
D)> 0, 0

Question 11

In Cobb Douglas Production of functions, the elasticity of Substitutions is :

A)greater than one
B)equal to one
C)less than one
D)None of these

Question 12

Feasible solution of LPP is:

A)Values of decision variables satisfy the constraints
B)Values of decision variables satisfy the objective functions
C)Values of variable satisfy the objective functions
D)the value of the objective function

Question 13

In linear programming, the dual of maximization is equal to:

A)minimization
B)Shadow Pricing
C)Maximisation
D)None of these

Question 14

Linear Programming deals with:

A)Constraints
B)Inequalities
C)Objective functions
D)All the above

Question 15

A production function is said to be _____, if, when each input factor is multiplied by a positive real constant k, the constant can be completely factored out:

A)homogenou
B)nonhomogenous
C)additive
D)heterogonous

Question 16

____ functions are a special class of homogeneous function in which the marginal rate of Technicalsubstitution is constant along the function.

A)Hypothetic
B)Homothetic
C)Objective
D)Value

Question 17

In linear programming, the number of technical constraints will be ___the number of the factors of production:

A)equal to
B)smaller than
C)greater than
D)the same as

Question 18

In linear programming, _____are expressed as inequalities, rather than equalities.

A)the technical constraints
B)objective functions
C)dual
D)primal

Question 19

In linear programming, _____ expresses the necessity that the levels of production of the commodity cannot be negative, that is, it should be either positive or zero.

A)the technical constraints
B)objective functions
C)non negativity constrains
D)primal

Question 20

In input-output analysis, ___ represents in monetary terms or quantitative terms all the transactions of the economic system.

A)the transaction matrix
B)objective functions
C)non negativity constrains

Question 21

In input-output analysis,____ shows the number of units of any industry's output needed to produce one unit of another industry's output.

A)the transaction matrix
B)The technical coefficients
C)non negativity constrains

Question 22

In input-output analysis,____ is obtained by dividing the input of the desired sector by the total output of the same sector.

A)the transaction matrix
B)a technology coefficient
C)non negativity constrains

Question 23

In input-output analysis,if the exogenous sectors of the open input output model is absorbed in to the system as just another sector _____

A)the transaction matrix
B)a technology coefficient
C)Leontief closed model

Question 24

In an input-output matrix, the element ____shows the input industry II takes from industry I.

A)a12
B)a21
C)a11
D)a22