Question:

For equilibrium market, the condition is____

A.

Demand > supply

B.

demand <supply

C.

demand = supply

D.

None of these

Answer» c. demand = supply

Question:

Abstraction from reality is made based on :

A.

assumptions

B.

prediction

C.

theory

D.

hypothesis

Answer» a. assumptions

Question:

Football socks are found to have a cross-elasticity of demand of −2 with respect to productY. 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

Question:

____ refers to the change in total cost (TC) due to the production of an additional unit ofoutput.

A.

MPC

B.

MC

C.

MPI

D.

MPPL

Answer» b. MC

Question:

A production function is said to be _____, if, when each input factor is multiplied by apositive real constant k, the constant can be completely factored out:

A.

homogenou

B.

nonhomogenous

C.

additive

D.

heterogonous

Answer» a. homogenou

Question:

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

Question:

Necessities have _____ elasticity of demand of between 0 and +1.

A.

cross

B.

price

C.

income

D.

any of these

Answer» c. income

Question:

______ function expresses the relationship between price of the good and quantity of thegood supplied.

A.

Supply

B.

Consumption

C.

Demand

D.

Income

Answer» a. Supply

Question:

____ indicates what proportion of the increased income will be saved.

A.

MPS

B.

MPC

C.

MPI

D.

GDP

Answer» a. MPS

Question:

In input-output analysis,when the technical coefficients are put in the form of a matrix, weget the______

A.

the transaction matrix

B.

a technology coefficient

C.

non negativity constrains

D.

the

Answer» d. the