Deck 1: Economics and Production Functions

Question 1

If marginal revenue is Rs. 25/- and elasticity of demand w. r. t price is 2, then the average revenue is

A) 50
B) 25
C) 75
D) 100

Answer 1

50

Question 2

Cost is a function of

A) price
B) revenue
C) quantity
D) none of these

Answer 2

quantity

Question 3

An example of fixed inputs of production is

A) land
B) organisation
C) both a and b
D) none of these

Answer 3

both a and b

Question 4

Total variable cost plus total fixed cost gives

A) total cost
B) average cost
C) marginal cost
D) none of these

Question 5

The ratio of total cost to the quantity produced is called

A) average cost
B) marginal cost
C) total variable cost
D) none

Question 6

Sum of explicit cost and implicit cost gives:

A) total cost
B) average cost
C) marginal cost
D) none of these

Question 7

For a unitary elastic supply curve, p s is

A) less than 1
B) more than 1
C) equal to 1
D) zero

Question 8

Cross price elasticity may not always be

A) symmetrical
B) asymmetrical
C) both a and b
D) none

Question 9

Luxury goods are:

A) price inelastic
B) price elastic
C) both a and b
D) none

Question 10

If close substitutes are available, then the elasticity of demand will be

A) low
B) moderate
C) high
D) optimum

Question 11

The relationship between supply and price is

A) negative
B) perfect
C) positive
D) none

Question 12

The relationship between demand and price is

A) positive
B) negative
C) perfect
D) none

Question 13

A given percentage change in price results in an equal percentage change in sales, indicates:

A) unitary price elasticity
B) inelastic price elasticity
C) elastic price elasticity
D) none

Question 14

What is the order of differential equation = 10x + 5

A) first
B) second
C) third
D) fourth

Question 15

A line for linear equation should begin from

A) origin
B) x axis
C) y axis
D) any of the above

Question 16

Functional relationship between input and output is called

A) isoquants
B) isocost
C) input function
D) production function

Question 17

Law of variable proportion explainsfor

A) short run
B) long run
C) medium run
D) none

Question 18

In CES production function, the elasticity of substitution is

A) unity
B) zero
C) negative
D) constant

Question 19

The highest power to which the derivative of highest order is raised in differential equation is called.

A) trace
B) order
C) degree
D) transpose

Question 20

MRTS is the slope of

A) production function
B) priceline
C) isocostline
D) isoquant

Question 21

Second stage in return to scale is called

A) increasing returns
B) diminishing returns
C) constant returns
D) negative returns

Question 22

Slope of Total product Curve is called

A) mp
B) ap
C) tc
D) mc

Question 23

For a function y=f(x), x1>x2 , f(x)1> f(x2) says that the function is

A) increasing
B) decreasing
C) constant
D) none of these

Question 24

The points at which a curve is neither increasing not decreasing is called

A) turning point
B) stationery points
C) both a and b
D) none of these