Question:

MRTS is the slope of

A.

production function

B.

priceline

C.

isocostline

D.

isoquant

Answer» d. isoquant

Question:

Law of variable proportion explainsfor

A.

short run

B.

long run

C.

medium run

D.

none

Answer» a. short run

Question:

The ratio of capital to labour is called

A.

average product of labour

B.

average product of capital

C.

factor intensity

D.

none of these

Answer» c. factor intensity

Question:

If fxxfyy < (fxy)2 when fxx and fyy are of the same sign, then the function is at

A.

minimum point

B.

maximum point

C.

inflexion point

D.

saddle point

Answer» b. maximum point

Question:

Functional relationship between input and output is called

A.

isoquants

B.

isocost

C.

input function

D.

production function

Answer» d. production function

Question:

Marginal cost of a function c = f(g) is

A.

dc/dq

B.

f\(q)

C.

both a and b

D.

none of these

Answer» c. both a and b

Question:

For a function y=f(x), x1>x2 f(x)1> f(x2) says that the function is

A.

increasing

B.

decreasing

C.

constant

D.

none of these

Answer» a. increasing

Question:

Cross price elasticity may not always be

A.

symmetrical

B.

asymmetrical

C.

both a and b

D.

none

Answer» a. symmetrical

Question:

If close substitutes are available, then the elasticity of demand will be

A.

low

B.

moderate

C.

high

D.

optimum

Answer» c. high

Question:

A given percentage change in price results in an equal percentage change in sales,indicates:

A.

unitary price elasticity

B.

inelastic price elasticity

C.

elastic price elasticity

D.

none

Answer» a. unitary price elasticity