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4

In general, most of the production functions measure:

A. The productivity of factors of production

B. The relation between the factors of production

C. The economies of scale

D. The relations between change in physical inputs and physical output

Correct Answer :

B. The relation between the factors of production


Related Questions

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An economic model describing the working of an economy consists of:

A. Functional relationships

B. Family relationships

C. Economic position

D. Stagnant relationships

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4

The entry of new firms in cournot model is:

A. Banned

B. Free

C. Partially free

D. Allowed

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4

The demand curve slopes downwards due to:

A. Income effect(I.E)

B. Substitution effect(S.E)

C. Taste effect

D. Both a and b

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4

Identify the author of The Social Framework:

A. R.G.D.Alien

B. J.R.Hicks

C. A.C.Pigou

D. None of the above

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4

A firm will be in equilibrium when the lowest isocost is:

A. Tangent to the lowest isoquant

B. Tangent to the given isoquant

C. Above the given isoquant

D. Below the given isoquant

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4

Because the price elasticity of demand for OPEC oil is approximately .08, in order to increase revenues OPEC should:

A. Lower price in order to increase revenues

B. Lower price in order to decrease the amount of oil sold

C. Rise price in order to increase the amount of oil sold

D. Raise price in order to increase revenues

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4

If two goods are complements then indifference curve (IC) will be:

A. Straight line

B. Convex to origin

C. Concave to origin

D. Lshaped

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4

Perfect competition assumes:

A. All buyers and sellers have perfect knowledge of the market

B. Freedom of entry of firms into the industry

C. Homogeneous product

D. All of the above

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4

We can find total utility by:

A. Multiplying the number of unit by its marginal utility

B. Adding up the marginal utility of all units

C. Multiplying price by number of units

D. None of the above

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4

All of the following curves are U-Shaped except:

A. The AVC curve

B. The AFC curve

C. The AC curve

D. The MC curve

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4

Along an isoquant, output remains same, and capital labor ratio:

A. Is also same

B. Is different

C. Is constant

D. Is zero

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4

The slope of an iso-quant represents:

A. MRS

B. MRT

C. MRTS

D. MRPS

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The optimum level of output in long run takes place where:

A. LAC = LMC

B. SAC = LMC

C. SAC =MC

D. SAC =LAC

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4

According to Marshallian approach, utility:

A. Can be added

B. Can be subtracted

C. Can be multiplied

D. Can be divided

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4

In case of monopoly:

A. MR

B. MR>AR

C. MR=AR

D. AR=0

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4

At a point where a straight line demand curve meets the price axis (Y-axis), the elasticity of demand is:

A. Equal to one

B. Less than one

C. Equal to zero

D. Equal to infinite

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4

In measuring price-elasticity:

A. Price is a dependent variable and quantity is an independent variable

B. Price is an independent variable and quantity is a dependent variable

C. Price and quantity both are independent variables

D. Price and quantity both are dependent variables

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4

A country is advised to devalue (reduce external value of) its currency only when its exports face:

A. Inelastic demand in foreign markets

B. Elastic demand in foreign markets

C. Unit elastic demand in foreign markets

D. None of the above

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4

A firm can never produce in the middle area of input space, in case of:

A. Concave isoquant

B. Convex isoquant

C. Constant isoquant

D. None of the above

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4

In short-run, in monopolistic competition, a firm earns:

A. Normal profits

B. Abnormal profits

C. No profits

D. All of the above

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4

In case of monopoly, both AR and MR fall, but MR falls:

A. Double to that of AR

B. 1/2 to that of AR

C. 2/3 to that of AR

D. Four times to that of AR

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4

In case of income effect, the level of consumers satisfaction rises when:

A. Income rises

B. Income falls

C. Sales rises

D. Price falls

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4

Price discrimination occurs when:

A. Different prices are charged to different consumers for homogenous products

B. Same prices are charged for differentiated products

C. Different prices are charged for homogenous goods for successive units to the same customer

D. Any of the above condition is present

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4

The Prisoners Dilemma was presented by A.W.Tucker in:

A. 1910

B. 1945

C. 1900

D. 1940

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4

In monopolistic competition (also in kinked demand curve model), a firm sells the amount where:

A. Individual demand curve (IDC) is equal to proportional demand curve (PDC)

B. Individual demand curve (IDC) is greater than proportional demand curve (PDC)

C. Individual demand curve (IDC) is less than proportional demand curve (PDC)

D. None of the above

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4

The law of demand is most directly a result of:

A. The law of comparative advantage

B. The law of diminishing returns

C. The principle of substitution

D. Economics of large scale production

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4

Profits of a firm will be calculated taking into account the units produced and the difference between:

A. Real cost and money cost

B. Variable cost and fixed cost

C. Average cost and average revenue

D. Marginal cost and average cost

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4

Rent is a creation of value, not of wealth who made this observation?

A. Adam Smith

B. David Ricardo

C. Alfred Marshal

D. A.C.Pigou

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4

In the modern theory of costs, the level of production which the firm considers feasible is known as:

A. Input factor

B. Heavy factor

C. Output factor

D. Load factor

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Total utility and price are:

A. Directly related

B. Unrelated

C. Closely related

D. Negatively related