# 50+ Mathematical Economics and Econometrics Solved MCQs

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1.

A. mathematical
B. econometrics
D. statistics
2.

A. behavioral
B. definitional
C. conditional
D. none
3.

A. supply
B. demand
C. elasticity
D. none
4.

A. negative
B. positive
C. no relation
D. none
5.

A. demand
B. equilibrium
C. supply
D. none
6.

A. consumption
B. saving
C. utility
D. interest
7.

A. .4
B. .6
C. .8
D. .7
8.

A. consumption
B. saving
C. investment
D. none
9.

A. production
B. consumption
C. distribution
D. investment
10.

A. cost
B. income
C. profit
D. revenue
11.

A. 2
B. 0
C. 1
D. 3
12.

A. saving
B. consumption
C. investment
D. none
13.

## The first derivative of the consumption function is:

A. marginal revenue
B. marginal cost
C. marginal propensity to consume
D. none
Answer» C. marginal propensity to consume
14.

A. 44x
B. 40x
C. 22x
D. 54x
15.

A. mc
B. ac
C. tc
D. none
16.

## The proportionate change in quantity demanded and the proportionate change in price is:

A. price elasticity
B. income elasticity
C. cross elasticity
D. none
17.

A. mux/muy
B. mpx/mpy
C. mrts
D. none
18.

A. mux/muy
B. mpl/mpk
C. mrsxy/mrs
D. mrx/mry
19.

## The ratio of the proportionate change in the quantity purchased of a good to the proportionate change in income:

A. price elasticity
B. income elasticity
C. cross elasticity
D. none
20.

A. negative good
B. positive good
C. superior good
D. normal good
21.

## The relationship between quantity demanded of a good and level of consumer’s income:

A. engel function
B. consumption function
C. saving function
D. none
22.

## The proportionate change in quantity demanded by a good due to proportionate change in the price of the other good:

A. price elasticity
B. income elasticity
C. cross elasticity
D. demand elasticity
23.

A. 5+12
B. 10x+12
C. 12x 10
D. 10x +12x
24.

A. mu
B. tu
C. au
D. none
25.

## The transformation of physical inputs in to outputs:

A. production function
B. consumption function
C. saving function
D. none
26.

A. second degree
B. first degree
C. third degree
D. none
27.

## The amount of a productive factor that is essential to produce a unit of product is called:

A. technical coefficient
B. fixed proportion
C. variable proportion
D. none
28.

A. apk
B. apl
C. mpl
D. mpk
29.

A. mpx/mpy
B. mpl/mpk
C. mrsxy/mrs
D. none
30.

A. 2
B. 1
C. 0
D. 3
31.

A. constant
B. increase
C. decrease
D. none
32.

## The percentage change in output caused by a given percentage change in a variable factor is:

A. output elasticity
B. income elasticity
C. price elasticity
D. none
33.

## If output is exhausted by the distributive shares of all factors:

A. euler theorem
B. output elasticity
C. labour share
D. none
34.

## Who is invented the linear programming technique:

A. h. thail
B. george b danzig
C. galton
D. karl pearson
35.

A. technical
B. objective
C. feasible
D. optimum
36.

A. linearity
B. elasticity
C. equilibrium
D. none
37.

A. objectivity
B. diet problem
C. constraint
D. none
38.

A. marsahll
B. pawel
C. ragner frisch
D. clompa
39.

## Error term serves the purpose of…………………….. assumption in economics:

A. dynamic
B. static
C. comparative
D. none of the above
Answer» D. none of the above
40.

## Econometrics model is ………….model.

A. exogenous
B. endogenous
C. identified
D. either exogenous or endogenous
Answer» D. either exogenous or endogenous
41.

## The starting point of econometric analysis is:

A. model specification
B. formulation of alternative hypothesis
C. formulation of null hypothesis
D. collection of data
Answer» C. formulation of null hypothesis
42.

## Regressor refers to:

A. independent variable
B. dependent variable
C. error term
D. dummy variable
43.

## In perfect linear model, we assume that regression coefficient remains………..

A. variable until some point
B. variable through out
C. constant to some point
D. constant through out
44.

## In econometric models, t+1 indicates:

B. current value with some fluctuations
C. expected value
D. none of these
45.

## Quota sample is………………….sample.

A. probability sample
B. non probability sample
C. convenient sample
D. judgment sample
46.

A. national
B. regional
C. spatial
D. heterogeneous
47.

## In an econometric model, Y = ∞ + βX, ∞ shows,

A. intercept of the equation
B. slope of the equation
C. average value of y for average value of x
D. rate of change
Answer» A. intercept of the equation
48.

## Error term indicates

A. fluctuations in the given data
B. variations
C. random variations
D. explained variation
49.

## Among the following, which is an assumption of OLS

A. the explanatory variables are measurable
B. the relationship being estimated is identified
C. error term and independent variables are related
D. error term and independent variables are linearly related
Answer» B. the relationship being estimated is identified
50.

## Linearity means

A. the ols estimates are linear function of random variable
B. the ols estimates are function of variable
C. the ols estimates are function of random variable
D. the ols estimates has minimum variance
Answer» A. the ols estimates are linear function of random variable
51.

A. 1-β
B. 1 + β
C. 1
D. β
52.

## Standard error is defined as,

A. standard deviation of the sampling distribution
B. standard deviation of the population
C. variance of the sampling distribution
D. variance of the population
Answer» A. standard deviation of the sampling distribution
53.

## Student t test is preferred in the case of a,

A. small sample
B. large sample
C. when sample is below 50
D. when sample is above 50
54.

## Cobb Douglas production function is an example of :

A. linear model
B. double log model
C. lin log model
D. log lin model