# Mathematical Tools for Economics 2 Solved MCQs

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1.

A. 50
B. 25
C. 75
D. 100
2.

A. price
B. revenue
C. quantity
D. none of these
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.

A. total cost
B. average cost
C. marginal cost
D. none of these
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
7.

A. total cost
B. average cost
C. marginal cost
D. none of these
8.

A. less than 1
B. more than 1
C. equal to 1
D. zero
9.

A. symmetrical
B. asymmetrical
C. both a and b
D. none
10.

## Luxury goods are:

A. price inelastic
B. price elastic
C. both a and b
D. none
11.

A. low
B. moderate
C. high
D. optimum
12.

A. negative
B. perfect
C. positive
D. none
13.

A. positive
B. negative
C. perfect
D. none
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
15.

A. first
B. second
C. third
D. fourth
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
18.

A. short run
B. long run
C. medium run
D. none
19.

A. unity
B. zero
C. negative
D. constant
20.

A. trace
B. order
C. degree
D. transpose
21.

## MRTS is the slope of

A. production function
B. priceline
C. isocostline
D. isoquant
22.

A. increasing returns
B. diminishing returns
C. constant returns
D. negative returns
23.

A. mp
B. ap
C. tc
D. mc
24.

A. increasing
B. decreasing
C. constant
D. none of these
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
26.

## The ratio of capital to labour is called

A. average product of labour
B. average product of capital
C. factor intensity
D. none of these
27.

## For profit maxmisation we must have

A. mr = mc
B. mc curve cut mr curve from below
C. both a and b
D. none of these
Answer» C. both a and b
28.

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

A. dy = f1dx1 + f2dx2
B. dy = f1dx2 + f2dx1
C. both a and b
D. none of these
Answer» A. dy = f1dx1 + f2dx2
29.

A. positive
B. zero
C. negative
D. none
30.

A. 3
B. 6
C. 1
D. 0
31.

A. 50
B. 25
C. 75
D. 100
32.

A. maximum
B. balanced
C. minimum
D. positive
33.

A. -1
B. 2
C. -2
D. 1
34.

A. complementary
B. substitutes
C. supplementary
D. giffen goods
35.

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

A. minimum point
B. maximum point
C. inflexion point