Question:

The Long run Average Cost curve (LAC) in modern cost theory isroughly

A.

u shaped

B.

saucer shaped

C.

l shaped

D.

rectangular hyperbola

Answer» d. rectangular hyperbola

Question:

By representing amounts of proceeds by all entrepreneurs along the Y axis and volumes of employment along the X-axis, we can draw——–curves.

A.

Employment

B.

Consumption and Savings

C.

Revenue and employment

D.

Aggregate supply and demand

Answer» a. Employment

Question:

In the Fisher’s extended equation of exchange MI VI represents:

A.

Credit money

B.

Primary money

C.

Both primary and credit money

D.

General price level

Answer» a. Credit money

Question:

Average Revenue curve under monopoly is :

A.

Upward slopping

B.

Downward slopping

C.

Horizontal straight line

D.

None of these

Answer» b. Downward slopping

Question:

Adam Smith, the father of modern economic theory, defined economics as a subject, which is mainly concerned with the study of nature and causes of generation of ______

A.

Wealth

B.

Welfare

C.

Hipness

D.

Scarcity

Answer» a. Wealth

Question:

“Treatise on money’ is a book written by:

A.

Pigou

B.

Marshall

C.

Robertson

D.

Keynes

Answer» d. Keynes

Question:

The marginal utility theory is contributed by:

A.

Marshall

B.

David Ricardo

C.

Adam Smith

D.

Samuelson

Answer» a. Marshall

Question:

In drawing an individual demand curve for a commodity, all but which of the following are kept constant:

A.

Individual’s money income

B.

The prices of the related commodity

C.

Price of the commodity under consideration

D.

Tastes of the consumer

Answer» c. Price of the commodity under consideration

Question:

If a more efficient technology was discovered by a firm, there would be:

A.

An upward shift in the AVC curve.

B.

An upward shift in the AFC curve.

C.

A downward shift in the AFC curve.

D.

A downward shift in the MC curve.

Answer» d. A downward shift in the MC curve.

Question:

Which of the following statements is true

A.

hicksian substitution effect is greater than slutsky substitution effect

B.

slutsky substitution effect is greater than hicksian substitution effect

C.

hicksian substitution effect is same and equal to slutsky substitution effect

D.

hicksian substitution effect is the reverse of slutsky substitution effect

Answer» b. slutsky substitution effect is greater than hicksian substitution effect