Question 1

The ratio of capital to labour is called
A) average product of labour
B) average product of capital
C) factor intensity
D) none of these

Accepted Answer

The ratio of capital to labour is referred to as "factor intensity," which indicates the amount of capital used in comparison to the amount of labor in the production process.

Question 2

For profit maxmisation we must have
A) mr = mc
B) mc curve cut mr curve from below
C) both a and b
D) none of these

Accepted Answer

For profit maximization, it is necessary that the marginal revenue (MR) equals the marginal cost (MC), and the MC curve must cut the MR curve from below. This ensures that the firm is producing at a level where the cost of producing one additional unit is exactly equal to the revenue it generates, maximizing profit.

Question 3

For a function y = f(x1,x2), the total differential is given by
A) dy = f1dx1 + f2dx2
B) dy = f1dx2 + f2dx1
C) both a and b
D) none of these

Accepted Answer

The total differential of a function y = f(x1, x2) is given by dy = (∂f/∂x1)dx1 + (∂f/∂x2)dx2, where ∂f/∂x1 and ∂f/∂x2 are partial derivatives of f with respect to x1 and x2, respectively. This is represented in option A as f1dx1 + f2dx2, assuming f1 and f2 denote these partial derivatives.

Question 4

The nature of tax multiplier is
A) positive
B) zero
C) negative
D) none

Accepted Answer

The answer of The nature of tax multiplier is
A) positive
B)...

Question 5

The inflexion points of the function y = x3 - 3x2 + 5 is at
A) 3
B) 6
C) 1
D) 0

Accepted Answer

An inflection point occurs where the second derivative changes sign. For the function $y = x^3 - 3x^2 + 5$, the first derivative is $y' = 3x^2 - 6x$, and the second derivative is $y'' = 6x - 6$. Setting the second derivative equal to zero gives $6x - 6 = 0$, solving for $x$ gives $x = 1$.

Question 6

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

Accepted Answer

The average revenue can be calculated using the formula: AR = MR * (E / (E - 1)), where AR is average revenue, MR is marginal revenue, and E is the price elasticity of demand. Substituting the given values (MR = 25, E = 2) into the formula gives AR = 25 * (2 / (2 - 1)) = 25 * 2 = 50.

Question 7

The output of a firm, with given prices of factors of production is decided so that the total cost is
A) maximum
B) balanced
C) minimum
D) positive

Accepted Answer

The answer of The output of a firm, with given...

Question 8

The minimal value of the function y = x4 - 4x3 + 16x is at
A) -1
B) 2
C) -2
D) 1

Accepted Answer

To find the minimal value of the function $y = x^4 - 4x^3 + 16x$, we first find its derivative: $y' = 4x^3 - 12x^2 + 16$. Setting the derivative equal to zero to find critical points gives $4x^3 - 12x^2 + 16 = 0$. Factoring out 4 gives $x^3 - 3x^2 + 4 = 0$, which is not easily solvable without specific techniques or tools. However, by inspection or using a graphing approach, we can identify that $x = 2$ is a critical point. Further analysis or using the second derivative test can confirm that this point corresponds to a local minimum. Therefore, the minimal value of the function occurs at $x = 2$.

Question 9

For two goods 1 and 2, if E12 > 0 implies that the two goods are
A) complementary
B) substitutes
C) supplementary
D) giffen goods

Accepted Answer

If E12 > 0, it means that an increase in the price of good 1 leads to an increase in the demand for good 2. This implies that the two goods are substitutes.

Question 10

If fxxfyy < (fxy)2 when fxx and fyy are of the same sign, then the function is at
A) minimum point
B) maximum point
C) inflexion point
D) saddle point

Accepted Answer

The answer of If fxxfyy < (fxy)2 when fxx and...

Quiz 2: Economics and Calculus

The ratio of capital to labour is called

For profit maxmisation we must have

For a function y = f(x1,x2) , the total differential is given by

The nature of tax multiplier is

The inflexion points of the function y = x3 - 3x2 + 5 is at

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

The output of a firm, with given prices of factors of production is decided so that the total cost is

The minimal value of the function y = x4 - 4x3 + 16x is at

For two goods 1 and 2, if E12 > 0 implies that the two goods are

If fxxfyy < (fxy) 2 when fxx and fyy are of the same sign, then the function is at