Question:

For a total cost function TC = 1.5Q2+ 4Q + 46, MC is :

A.

1.5Q + 4 +

B.

1.5Q + 4

C.

1.5Q

D.

4Q + 46

Answer» a. 1.5Q + 4 +

Question:

_______ function was designed by J M Keynes to show the relationship between realdisposable income and consumer spending.

A.

Consumption

B.

Investment

C.

Demand

D.

Utility

Answer» a. Consumption

Question:

Given the consumption function C = a + bY, the slope ‘b’ represents:

A.

MPS

B.

autonomous consumption

C.

MPC

D.

Saving

Answer» c. MPC

Question:

When elasticity of demand is 2, the demand will be:

A.

Perfectly elastic

B.

Perfectly inelastic

C.

Relatively elastic

D.

Unit elastic

Answer» c. Relatively elastic

Question:

In input-output analysis,____ shows the number of units of any industry’s output needed toproduce one unit of another industry’s output.

A.

the transaction matrix

B.

The technical coefficients

C.

non negativity constrains

D.

the

Answer» b. The technical coefficients

Question:

The first derivative measures the rate of change or ____ of a function:

A.

intercept

B.

convexity

C.

slope

D.

concavity

Answer» c. slope

Question:

____ functions are a special class of homogeneous function in which the marginal rate ofTechnicalsubstitution is constant along the function.

A.

Hypothetic

B.

Homothetic

C.

Objective

D.

Value

Answer» b. Homothetic

Question:

Given the consumption function C = a + bY, where ‘a’, the intercept, represents_____

A.

Income

B.

autonomous consumption

C.

Demand

D.

Saving

Answer» b. autonomous consumption

Question:

In optimisation, with the first order derivative equal to ___ and the second order derivative___ the function is at a maximum.

A.

0, 0

B.

0, < 0

C.

0, > 0

D.

> 0, 0

Answer» b. 0, < 0

Question:

If the demand curve for a monopolist is P = 100 -20Q, then the marginal revenue of thatfirm is given by the equation:

A.

MR = 200 − 20Q

B.

MR = 50 − 40Q

C.

MR = 100 − 20Q

D.

MR = 100 − 40Q

Answer» d. MR = 100 − 40Q