McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) .
| 101. |
______ function expresses the relationship between price of the good and quantity of the good demanded. |
| A. | Supply |
| B. | Consumption |
| C. | Demand |
| D. | Income |
| Answer» C. Demand | |
| 102. |
______ function expresses the relationship between price of the good and quantity of the good supplied. |
| A. | Supply |
| B. | Consumption |
| C. | Demand |
| D. | Income |
| Answer» A. Supply | |
| 103. |
Function which map the relation between the physical measure of money and the perceived value of money is _____ |
| A. | Income |
| B. | Investment |
| C. | Demand |
| D. | Utility |
| Answer» D. Utility | |
| 104. |
_______ function was designed by J M Keynes to show the relationship between real disposable income and consumer spending. |
| A. | Consumption |
| B. | Investment |
| C. | Demand |
| D. | Utility |
| Answer» A. Consumption | |
| 105. |
Given the consumption function C = a + bY, where ‘a’, the intercept, represents_____ |
| A. | Income |
| B. | autonomous consumption |
| C. | Demand |
| D. | Saving |
| Answer» B. autonomous consumption | |
| 106. |
Given the consumption function C = a + bY, the slope ‘b’ represents: |
| A. | MPS |
| B. | autonomous consumption |
| C. | MPC |
| D. | Saving |
| Answer» C. MPC | |
| 107. |
For equilibrium market, the condition is____ |
| A. | Demand > supply |
| B. | demand <supply |
| C. | demand = supply |
| D. | None of these |
| Answer» C. demand = supply | |
| 108. |
Given TR = 10x, TC = 5x+2, profit function is : |
| A. | 5x – 2 |
| B. | 5x |
| C. | 10x – 5x |
| D. | 5x + 2 |
| Answer» A. 5x – 2 | |
| 109. |
Demand function for a commodity is D = 44 – 7P and supply function S = 2P –10, then the equilibrium price is: |
| A. | 4 |
| B. | 6 |
| C. | 8 |
| D. | 10 |
| Answer» B. 6 | |
| 110. |
If u = xn is total utility, the functions of marginal utility u will be: |
| A. | nxn+1 |
| B. | nxn-1 |
| C. | xn+1 |
| D. | n 1xn |
| Answer» B. nxn-1 | |
| 111. |
When the total revenue functions is R = 100−X2, the marginal revenue is : |
| A. | 100 – 2X |
| B. | 100 |
| C. | −2X |
| D. | −X2 |
| Answer» C. −2X | |
| 112. |
The cost per output is given by C = 2x + 27. Then the marginal cost when x = 5 is: |
| A. | 2 |
| B. | 27 |
| C. | 0 |
| D. | 47 |
| Answer» D. 47 | |
| 113. |
When elasticity of demand is 2, the demand will be: |
| A. | Perfectly elastic |
| B. | Perfectly inelastic |
| C. | Relatively elastic |
| D. | Unit elastic |
| Answer» C. Relatively elastic | |
| 114. |
The Price elasticity of demand for a product is 1.5 and its MR = 8, find its price: |
| A. | 12 |
| B. | 24 |
| C. | 53 |
| D. | 16 |
| Answer» B. 24 | |
| 115. |
The elasticity of demand for the demand curve of a firm under perfect competition is |
| A. | 1 |
| B. | 0 |
| C. | -1 |
| D. | α |
| Answer» D. α | |
| 116. |
Given a total utility function, Marginal utility is obtained by finding ______ |
| A. | First derivative |
| B. | Second derivative |
| C. | Integral |
| D. | Coefficient |
| Answer» A. First derivative | |
| 117. |
Mathematically ____ is the first derivative of the consumption function. |
| A. | MPS |
| B. | MPC |
| C. | MPI |
| D. | GDP |
| Answer» B. MPC | |
| 118. |
____ indicates what proportion of the increased income will be saved. |
| A. | MPS |
| B. | MPC |
| C. | MPI |
| D. | GDP |
| Answer» A. MPS | |
| 119. |
_____ measures the change in TP due to a one unit change in the quantity of labour used: |
| A. | MPC |
| B. | MPS |
| C. | MPI |
| D. | MPPL |
| Answer» D. MPPL | |
| 120. |
____ refers to the change in total cost (TC) due to the production of an additional unit of output. |
| A. | MPC |
| B. | MC |
| C. | MPI |
| D. | MPPL |
| Answer» B. MC | |
| 121. |
𝑀𝑃𝐿 𝑀𝑃𝐾 = ____ |
| A. | MPC |
| B. | MC |
| C. | MRTSLK |
| D. | MPPL |
| Answer» C. MRTSLK | |
| 122. |
The slope of ___curve will be positive if and only if the marginal cost curve lies above the AC curve. |
| A. | AC |
| B. | MC |
| C. | ATC |
| D. | MP |
| Answer» A. AC | |
| 123. |
At a price of Rs11.00, quantity demanded is 90; and at a price of Rs.9.00, quantity demanded is 110. The price elasticity of demand is: |
| A. | 0.8 |
| B. | 1 |
| C. | 1.5 |
| D. | -1.22 |
| Answer» D. -1.22 | |
| 124. |
For complementary goods the cross elasticity of demand will be ______ |
| A. | negative |
| B. | zero |
| C. | positive |
| D. | any of these |
| Answer» A. negative | |
| 125. |
Necessities have _____ elasticity of demand of between 0 and +1. |
| A. | cross |
| B. | price |
| C. | income |
| D. | any of these |
| Answer» C. income | |
| 126. |
If your income doubles and the prices of the goods you buy double, then your demand for these goods will likely ________ |
| A. | increase |
| B. | not change |
| C. | decrease |
| D. | shift |
| Answer» B. not change | |
| 127. |
Football socks are found to have a cross-elasticity of demand of −2 with respect to product Y. Which of the following products is most likely to be product Y: |
| A. | Cricket boots |
| B. | Tennis shoes |
| C. | Tennis socks |
| D. | Football boots |
| Answer» D. Football boots | |
| 128. |
The process of finding relative maximum or minimum of a function is known as : |
| A. | optimization |
| B. | minimisation |
| C. | maximisation |
| D. | any of these |
| Answer» A. optimization | |
| 129. |
A ____ is a point at which a function is at a relative maximum or minimum: |
| A. | plateau |
| B. | relative extremum |
| C. | inflection |
| D. | critical value |
| Answer» B. relative extremum | |
| 130. |
The value of Lagrange multiplier λ gives the approximate change in the objective function caused by a small change in the: |
| A. | constant of the constraint |
| B. | objective function |
| C. | variables in the constraint |
| D. | any of these |
| Answer» A. constant of the constraint | |
| 131. |
The first derivative measures the rate of change or ____ of a function: |
| A. | intercept |
| B. | convexity |
| C. | slope |
| D. | concavity |
| Answer» C. slope | |
| 132. |
For a cost function TC = 3Q2 + 7Q +12, MC is : |
| A. | 6Q |
| B. | 6Q + 7 |
| C. | 3Q + 7 |
| D. | undefined |
| Answer» B. 6Q + 7 | |
| 133. |
MR is : |
| A. | the second order derivative of TR |
| B. | the first order derivative of TC |
| C. | the first order derivative of TR |
| D. | the first order derivative of TR |
| Answer» D. the first order derivative of TR | |
| 134. |
In optimisation, with the first order derivative equal to ___ and the second order derivative ___ the function is at a maximum. |
| A. | 0, 0 |
| B. | 0, < 0 |
| C. | 0, > 0 |
| D. | > 0, 0 |
| Answer» B. 0, < 0 | |
| 135. |
When we optimise a function, with the first order derivative equal to ___ and the second order derivative ___ the function is at a relative minimum. |
| A. | 0, 0 |
| B. | 0, < 0 |
| C. | 0, > 0 |
| D. | > 0, 0 |
| Answer» C. 0, > 0 | |
| 136. |
In Cobb Douglas Production of functions, the elasticity of Substitutions is : |
| A. | greater than one |
| B. | equal to one |
| C. | less than one |
| D. | None of these |
| Answer» B. equal to one | |
| 137. |
Feasible solution of LPP is: |
| A. | Values of decision variables satisfy the constraints |
| B. | Values of decision variables satisfy the objective functions |
| C. | Values of variable satisfy the objective functions |
| D. | the value of the objective function |
| Answer» B. Values of decision variables satisfy the objective functions | |
| 138. |
In linear programming, the dual of maximization is equal to: |
| A. | minimization |
| B. | Shadow Pricing |
| C. | Maximisation |
| D. | None of these |
| Answer» A. minimization | |
| 139. |
Linear Programming deals with: |
| A. | Constraints |
| B. | Inequalities |
| C. | Objective functions |
| D. | All the above |
| Answer» D. All the above | |
| 140. |
A production function is said to be _____, if, when each input factor is multiplied by a positive real constant k, the constant can be completely factored out: |
| A. | homogenou |
| B. | nonhomogenous |
| C. | additive |
| D. | heterogonous |
| Answer» A. homogenou | |
| 141. |
____ functions are a special class of homogeneous function in which the marginal rate of Technicalsubstitution is constant along the function. |
| A. | Hypothetic |
| B. | Homothetic |
| C. | Objective |
| D. | Value |
| Answer» B. Homothetic | |
| 142. |
In linear programming, the number of technical constraints will be ___the number of the factors of production: |
| A. | equal to |
| B. | smaller than |
| C. | greater than |
| D. | the same as |
| Answer» D. the same as | |
| 143. |
In linear programming, _____are expressed as inequalities, rather than equalities. |
| A. | the technical constraints |
| B. | objective functions |
| C. | dual |
| D. | primal |
| Answer» A. the technical constraints | |
| 144. |
In linear programming, _____ expresses the necessity that the levels of production of the commodity cannot be negative, that is, it should be either positive or zero. |
| A. | the technical constraints |
| B. | objective functions |
| C. | non negativity constrains |
| D. | primal |
| Answer» C. non negativity constrains | |
| 145. |
In input-output analysis, ___ represents in monetary terms or quantitative terms all the transactions of the economic system. |
| A. | the transaction matrix |
| B. | objective functions |
| C. | non negativity constrains |
| D. | the |
| Answer» A. the transaction matrix | |
| 146. |
In input-output analysis,____ shows the number of units of any industry’s output needed to produce one unit of another industry’s output. |
| A. | the transaction matrix |
| B. | The technical coefficients |
| C. | non negativity constrains |
| D. | the |
| Answer» B. The technical coefficients | |
| 147. |
In input-output analysis,____ is obtained by dividing the input of the desired sector by the total output of the same sector. |
| A. | the transaction matrix |
| B. | a technology coefficient |
| C. | non negativity constrains |
| D. | the |
| Answer» B. a technology coefficient | |
| 148. |
In input-output analysis,when the technical coefficients are put in the form of a matrix, we get the______ |
| A. | the transaction matrix |
| B. | a technology coefficient |
| C. | non negativity constrains |
| D. | the |
| Answer» D. the | |
| 149. |
In input-output analysis,if the exogenous sectors of the open input output model is absorbed in to the system as just another sector _____ |
| A. | the transaction matrix |
| B. | a technology coefficient |
| C. | Leontief closed model |
| D. | the |
| Answer» C. Leontief closed model | |
| 150. |
In an input-output matrix, the element ____shows the input industry II takes from industry I. |
| A. | a12 |
| B. | a21 |
| C. | a11 |
| D. | a22 |
| Answer» A. a12 | |
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