Question:

𝑀𝑃𝐿 𝑀𝑃𝐾 = ____

A.

MPC

B.

MC

C.

MRTSLK

D.

MPPL

Answer» c. MRTSLK

Question:

_____ is the best criteria to judge the validity of a model :

A.

Assumptions

B.

Information it provides

C.

Its simplicity

D.

predictive power

Answer» d. predictive power

Question:

In Cobb Douglas Production of functions, the elasticity of Substitutions is :

A.

greater than one

B.

equal to one

C.

less than one

D.

None of these

Answer» b. equal to one

Question:

For complementary goods the cross elasticity of demand will be ______

A.

negative

B.

zero

C.

positive

D.

any of these

Answer» a. negative

Question:

If u = xnis total utility, the functions of marginal utility u will be:

A.

nxn+1

B.

nxn-1

C.

xn+1

D.

n 1xn

Answer» b. nxn-1

Question:

-βrepresents:

A.

Diminishing returns to scale

B.

Increasing returns to scale

C.

Constant returns to scale

D.

None of the above

Answer» c. Constant returns to scale

Question:

The best or optimum level of output for a perfectly competitive firm is given by the point:

A.

MR = AC

B.

MR = MC

C.

MR exceeds MC by the greater amount

D.

MR = MC and MC is rising

Answer» d. MR = MC and MC is rising

Question:

Mathematically ____ is the first derivative of the consumption function.

A.

MPS

B.

MPC

C.

MPI

D.

GDP

Answer» b. MPC

Question:

The market demand curve for a perfectly competitive industry is QD = 12 – 2P. The marketsupply curve is QS = 3 + P. The market will be in equilibrium if:

A.

P = 6 and Q =

B.

P = 3 and Q = 6

C.

P = 4 and Q = 4

D.

P = 5 and Q = 2

Answer» b. P = 3 and Q = 6

Question:

The given function f (x) = ax + b, is an example of ____ function:

A.

quadratic

B.

polynomial

C.

linear

D.

rational

Answer» c. linear