Question:

In linear programming, the dual of maximization is equal to:

A.

minimization

B.

Shadow Pricing

C.

Maximisation

D.

None of these

Answer» a. minimization

Question:

A perfectly competitive firm should reduce output or shut down in the short run if marketprice is equal to marginal cost and price is:

A.

greater than average total cost

B.

less than average total cost

C.

greater than average variable cost

D.

less than average variable cost

Answer» d. less than average variable cost

Question:

Demand function for a commodity is D = 44 – 7P and supply function S = 2P –10, then theequilibrium price is:

A.

4

B.

6

C.

8

D.

10

Answer» b. 6

Question:

____ is a simplified description of reality, designed to yield hypothesis about economicbehaviour that can be tested.

A.

theory

B.

postulate

C.

proposition

D.

economic model

Answer» b. postulate

Question:

A price discriminating Monopolist is considered more efficient than a single pricesmonopolist because:

A.

a price discriminating Monopolist knows its consumers better

B.

a price discriminating Monopolist can set prices more efficiently

C.

a price discriminating Monopolist produces a higher level of output

D.

a price discriminating Monopolist can produce it’s output at a lower cost

Answer» c. a price discriminating Monopolist produces a higher level of output

Question:

The given function f (x) = ax2+ bx + c , is an example of ____ function:

A.

quadratic

B.

polynomial

C.

linear

D.

rational

Answer» a. quadratic

Question:

P = a – bQ is the demand cure of a monopolist. Which of the following statements istrue?

A.

AR & MR are equal

B.

The rate of decline of MR is twice the rate of decline of AR

C.

The demand curve has unit elasticity

D.

slope of MR is zero.

Answer» b. The rate of decline of MR is twice the rate of decline of AR

Question:

In input-output analysis,if the exogenous sectors of the open input output model is absorbedin 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

Question:

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

Question:

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