Quiznetik
Mathematical Tools for Economics 2 | Set 1
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
Correct : A. 50
2. Cost is a function of
A. price
B. revenue
C. quantity
D. none of these
Correct : C. quantity
3. An example of fixed inputs of production is
A. land
B. organisation
C. both a and b
D. none of these
Correct : 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
Correct : 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
Correct : 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
Correct : 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
Correct : 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
Correct : C. equal to 1
9. Cross price elasticity may not always be
A. symmetrical
B. asymmetrical
C. both a and b
D. none
Correct : A. symmetrical
10. Luxury goods are:
A. price inelastic
B. price elastic
C. both a and b
D. none
Correct : B. price elastic
11. If close substitutes are available, then the elasticity of demand will be
A. low
B. moderate
C. high
D. optimum
Correct : C. high
12. The relationship between supply and price is
A. negative
B. perfect
C. positive
D. none
Correct : C. positive
13. The relationship between demand and price is
A. positive
B. negative
C. perfect
D. none
Correct : 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
Correct : A. unitary price elasticity
15. What is the order of differential equation = 10x + 5
A. first
B. second
C. third
D. fourth
Correct : A. first
16. A line for linear equation should begin from
A. origin
B. x axis
C. y axis
D. any of the above
Correct : D. any of the above
17. Functional relationship between input and output is called
A. isoquants
B. isocost
C. input function
D. production function
Correct : D. production function
18. Law of variable proportion explainsfor
A. short run
B. long run
C. medium run
D. none
Correct : A. short run
19. In CES production function, the elasticity of substitution is
A. unity
B. zero
C. negative
D. constant
Correct : 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
Correct : C. degree
21. MRTS is the slope of
A. production function
B. priceline
C. isocostline
D. isoquant
Correct : D. isoquant
22. Second stage in return to scale is called
A. increasing returns
B. diminishing returns
C. constant returns
D. negative returns
Correct : C. constant returns
23. Slope of Total product Curve is called
A. mp
B. ap
C. tc
D. mc
Correct : 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
Correct : 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
Correct : 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
Correct : 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
Correct : 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
Correct : A. dy = f1dx1 + f2dx2
29. The nature of tax multiplier is
A. positive
B. zero
C. negative
D. none
Correct : B. zero
30. The inflexion points of the function y = x3 – 3x2 + 5 is at
A. 3
B. 6
C. 1
D. 0
Correct : 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
Correct : 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
Correct : D. positive
33. The minimal value of the function y = x4 – 4x3 + 16x is at
A. -1
B. 2
C. -2
D. 1
Correct : 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
Correct : 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
Correct : B. maximum point