Question 1

Cross price elasticity may not always be

Accepted Answer

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

Question 2

A line for linear equation should begin from

Accepted Answer

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

Question 3

Sum of explicit cost and implicit cost gives:

Accepted Answer

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

Question 4

For a unitary elastic supply curve, p s is

Accepted Answer

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

Question 5

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

Accepted Answer

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

Question 6

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

Accepted Answer

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

Question 7

The relationship between demand and price is

Accepted Answer

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

Question 8

Second stage in return to scale is called

Accepted Answer

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

Question 9

Total variable cost plus total fixed cost gives

Accepted Answer

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

Question 10

MRTS is the slope of

Accepted Answer

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

Question 11

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

Accepted Answer

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

Question 12

Functional relationship between input and output is called

Accepted Answer

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

Question 13

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

Accepted Answer

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

Question 14

Law of variable proportion explainsfor

Accepted Answer

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

Question 15

Cost is a function of

Accepted Answer

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

Question 16

An example of fixed inputs of production is

Accepted Answer

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

Question 17

Slope of Total product Curve is called

Accepted Answer

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

Question 18

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

Accepted Answer

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

Question 19

The relationship between supply and price is

Accepted Answer

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

Question 20

The ratio of total cost to the quantity produced is called

Accepted Answer

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

Exam 1: Economics and Production Functions