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) .
| 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 | |
| 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 |
| Answer» C. factor intensity | |
| 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. |
The nature of tax multiplier is |
| A. | positive |
| B. | zero |
| C. | negative |
| D. | none |
| Answer» B. zero | |
| 30. |
The inflexion points of the function y = x3 – 3x2 + 5 is at |
| A. | 3 |
| B. | 6 |
| C. | 1 |
| D. | 0 |
| Answer» C. 1 | |
| 31. |
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 | |
| 32. |
The output of a firm, with given prices of factors of production is decided so that the total cost is |
| A. | maximum |
| B. | balanced |
| C. | minimum |
| D. | positive |
| Answer» D. positive | |
| 33. |
The minimal value of the function y = x4 – 4x3 + 16x is at |
| A. | -1 |
| B. | 2 |
| C. | -2 |
| D. | 1 |
| Answer» B. 2 | |
| 34. |
For two goods 1 and 2, if E12 > 0 implies that the two goods are |
| A. | complementary |
| B. | substitutes |
| C. | supplementary |
| D. | giffen goods |
| Answer» A. complementary | |
| 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 |
| D. | saddle point |
| Answer» B. maximum point | |
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