Mathematical Tools for Economics 2 Solved MCQs

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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