Deck 5: Economics Functions and Elasticities

Question 1

______ function expresses the relationship between price of the good and quantity of the good demanded.

A)Supply
B)Consumption
C)Demand
D)Income

Answer 1

Demand

Question 2

______ function expresses the relationship between price of the good and quantity of the good supplied.

A)Supply
B)Consumption
C)Demand
D)Income

Answer 2

Supply

Question 3

Function which map the relation between the physical measure of money and the perceived value of money is _____

A)Income
B)Investment
C)Demand
D)Utility

Answer 3

Utility

Question 4

_______ function was designed by J M Keynes to show the relationship between real disposable income and consumer spending.

A)Consumption
B)Investment
C)Demand
D)Utility

Question 5

Given the consumption function C = a + bY, where 'a', the intercept, represents_____

A)Income
B)autonomous consumption
C)Demand
D)Saving

Question 6

Given the consumption function C = a + bY, the slope 'b' represents:

A)MPS
B)autonomous consumption
C)MPC
D)Saving

Question 7

For equilibrium market, the condition is____

A)Demand > supply
B)demand C)demand = supply
D)None of these

Question 8

Given TR = 10x, TC = 5x+2, profit function is :

A)5x - 2
B)5x
C)10x - 5x
D)5x + 2

Question 9

Demand function for a commodity is D = 44 - 7P and supply function S = 2P -10, then the equilibrium price is:

A)4
B)6
C)8
D)10

Question 10

When the total revenue functions is R = 100?X2, the marginal revenue is :

A)100 - 2X
B)100
C)?2X
D)?X2

Question 11

The cost per output is given by C = 2x + 27. Then the marginal cost when x = 5 is:

A)2
B)27
C)0
D)47

Question 12

When elasticity of demand is 2, the demand will be:

A)Perfectly elastic
B)Perfectly inelastic
C)Relatively elastic
D)Unit elastic

Question 13

The Price elasticity of demand for a product is 1.5 and its MR = 8, find its price:

A)12
B)24
C)53
D)16

Question 14

The elasticity of demand for the demand curve of a firm under perfect competition is

A)1
B)0
C)-1
D)?

Question 15

Given a total utility function, Marginal utility is obtained by finding ______

A)First derivative
B)Second derivative
C)Integral
D)Coefficient

Question 16

Mathematically ____ is the first derivative of the consumption function.

A)MPS
B)MPC
C)MPI
D)GDP

Question 17

____ indicates what proportion of the increased income will be saved.

A)MPS
B)MPC
C)MPI
D)GDP

Question 18

_____ measures the change in TP due to a one unit change in the quantity of labour used:

A)MPC
B)MPS
C)MPI
D)MPPL

Question 19

____ refers to the change in total cost (TC) due to the production of an additional unit of output.

A)MPC
B)MC
C)MPI
D)MPPL

Question 20

The slope of ___curve will be positive if and only if the marginal cost curve lies above the AC curve.

A)AC
B)MC
C)ATC
D)MP

Question 21

At a price of Rs11.00, quantity demanded is 90; and at a price of Rs.9.00, quantity demanded is 110. The price elasticity of demand is:

A)0.8
B)1
C)1.5
D)-1.22

Question 22

For complementary goods the cross elasticity of demand will be ______

A)negative
B)zero
C)positive
D)any of these

Question 23

Necessities have _____ elasticity of demand of between 0 and +1.

A)cross
B)price
C)income
D)any of these