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» A. 50 |

2. |
## Cost is a function of |

A. | price |

B. | revenue |

C. | quantity |

D. | none of these |

Answer» C. quantity |

3. |
## An example of fixed inputs of production is |

A. | land |

B. | organisation |

C. | both a and b |

D. | none of these |

Answer» C. both a and b |

4. |
## Total variable cost plus total fixed cost gives |

A. | total cost |

B. | average cost |

C. | marginal cost |

D. | none of these |

Answer» A. total cost |

5. |
## Marginal cost of a function c = f(g) is |

A. | dc/dq |

B. | f\(q) |

C. | both a and b |

D. | none of these |

Answer» C. both a and b |

6. |
## The ratio of total cost to the quantity produced is called |

A. | average cost |

B. | marginal cost |

C. | total variable cost |

D. | none |

Answer» A. average cost |

7. |
## Sum of explicit cost and implicit cost gives: |

A. | total cost |

B. | average cost |

C. | marginal cost |

D. | none of these |

Answer» A. total cost |

8. |
## For a unitary elastic supply curve, p s is |

A. | less than 1 |

B. | more than 1 |

C. | equal to 1 |

D. | zero |

Answer» C. equal to 1 |

9. |
## Cross price elasticity may not always be |

A. | symmetrical |

B. | asymmetrical |

C. | both a and b |

D. | none |

Answer» A. symmetrical |

10. |
## Luxury goods are: |

A. | price inelastic |

B. | price elastic |

C. | both a and b |

D. | none |

Answer» B. price elastic |

11. |
## If close substitutes are available, then the elasticity of demand will be |

A. | low |

B. | moderate |

C. | high |

D. | optimum |

Answer» C. high |

12. |
## The relationship between supply and price is |

A. | negative |

B. | perfect |

C. | positive |

D. | none |

Answer» C. positive |

13. |
## The relationship between demand and price is |

A. | positive |

B. | negative |

C. | perfect |

D. | none |

Answer» B. negative |

14. |
## 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 |

Answer» A. unitary price elasticity |

15. |
## What is the order of differential equation = 10x + 5 |

A. | first |

B. | second |

C. | third |

D. | fourth |

Answer» A. first |

16. |
## A line for linear equation should begin from |

A. | origin |

B. | x axis |

C. | y axis |

D. | any of the above |

Answer» D. any of the above |

17. |
## Functional relationship between input and output is called |

A. | isoquants |

B. | isocost |

C. | input function |

D. | production function |

Answer» D. production function |

18. |
## Law of variable proportion explainsfor |

A. | short run |

B. | long run |

C. | medium run |

D. | none |

Answer» A. short run |

19. |
## In CES production function, the elasticity of substitution is |

A. | unity |

B. | zero |

C. | negative |

D. | constant |

Answer» D. constant |

20. |
## 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 |

Answer» C. degree |

21. |
## MRTS is the slope of |

A. | production function |

B. | priceline |

C. | isocostline |

D. | isoquant |

Answer» D. isoquant |

22. |
## Second stage in return to scale is called |

A. | increasing returns |

B. | diminishing returns |

C. | constant returns |

D. | negative returns |

Answer» C. constant returns |

23. |
## Slope of Total product Curve is called |

A. | mp |

B. | ap |

C. | tc |

D. | mc |

Answer» A. mp |

24. |
## 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 |

Answer» A. increasing |

25. |
## 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 |

Answer» C. both a and b |

Tags

Question and answers in Mathematical Tools for Economics 2,
Mathematical Tools for Economics 2 multiple choice questions and answers,
Mathematical Tools for Economics 2 Important MCQs,
Solved MCQs for Mathematical Tools for Economics 2,
Mathematical Tools for Economics 2 MCQs with answers PDF download

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