Question 1

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 A

Question 2

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

Accepted Answer

A)   minimum point
B)   maximum point
C)   inflexion point
D)   saddle point B

Question 3

The nature of tax multiplier is

Accepted Answer

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

Question 4

For profit maxmisation we must have

Accepted Answer

A)   mr = mc
B)   mc curve cut mr curve from below
C)   both a and b
D)   none of these

Question 5

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

Accepted Answer

A)   -1
B)   2
C)   -2
D)   1

Question 6

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

Accepted Answer

A)   complementary
B)   substitutes
C)   supplementary
D)   giffen goods

Question 7

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

Accepted Answer

A)   3
B)   6
C)   1
D)   0

Question 8

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

Accepted Answer

A)   dy = f1dx1 + f2dx2
B)   dy = f1dx2 + f2dx1
C)   both a and b
D)   none of these

Question 9

The ratio of capital to labour is called

Accepted Answer

A)   average product of labour
B)   average product of capital
C)   factor intensity
D)   none of these

Question 10

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

Accepted Answer

A)   maximum
B)   balanced
C)   minimum
D)   positive

Exam 2: Economics and Calculus

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