Question:

In CES production function, the elasticity of substitution is

A.

unity

B.

zero

C.

negative

D.

constant

Answer» d. constant

Question:

Luxury goods are:

A.

price inelastic

B.

price elastic

C.

both a and b

D.

none

Answer» b. price elastic

Question:

The highest power to which the derivative of highest order is raised in differentialequation is called.

A.

trace

B.

order

C.

degree

D.

transpose

Answer» c. degree

Question:

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

Answer» a. dy = f1dx1 + f2dx2

Question:

Second stage in return to scale is called

A.

increasing returns

B.

diminishing returns

C.

constant returns

D.

negative returns

Answer» c. constant returns

Question:

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

Answer» c. both a and b

Question:

A line for linear equation should begin from

A.

origin

B.

x axis

C.

y axis

D.

any of the above

Answer» d. any of the above

Question:

What is the order of differential equation = 10x + 5

A.

first

B.

second

C.

third

D.

fourth

Answer» a. first

Question:

For two goods 1 and 2, if E12 > 0 implies that the two goods are

A.

complementary

B.

substitutes

C.

supplementary

D.

giffen goods

Answer» a. complementary

Question:

Total variable cost plus total fixed cost gives

A.

total cost

B.

average cost

C.

marginal cost

D.

none of these

Answer» a. total cost