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What is the correct answer?

4

Iso-product curve (isoquant) shows:

A. A given quantity of output that can be produced by various combinations of two inputs

B. Varying quantities of output that can be produced by the same combination of two factors

C. Combination of two factors that can give the least cost of production

D. Combination of two goods that cost the same amount to the producer

Correct Answer :

A. A given quantity of output that can be produced by various combinations of two inputs


Related Questions

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According to Marshal, the Law of Diminishing Returns is applicable to:

A. Industry

B. All fields of production

C. Agriculture

D. None of the above

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In substitution effect, we:

A. Move to another indifference curve

B. Move along given indifference curve

C. Move to a higher indifference curve

D. Move to a lower indifference curve

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4

Given a U shaped average cost curve, the relationship between average cost and marginal cost is such that marginal cost must always be:

A. Falling when average cost is falling

B. Rising when average cost is falling

C. Falling when average cost is rising

D. Rising when average cost is rising

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4

By saying that monopolist create a contrived scarcity, economist mean that monopolist:

A. Restrict output to increase price

B. Produce where MC > P

C. Create a gap b/w quantity demanded and supplied

D. None of the above

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4

Discriminating monopoly implies that the monopolist charges different prices for his commodity:

A. From different groups of consumers

B. For different uses

C. At different places

D. Any of the above

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4

In the case of complements, the cross demand curve slopes:

A. Downwards to the right

B. Upwards to the right

C. Backwards to the top

D. Inwards at the bottom

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4

In Edgeworth model, prices oscillate between:

A. Firms and industry price

B. Monopoly and duopoly price

C. Competitive and monopoly price

D. None of the above

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Which of the following conditions is met in the long-run equilibrium in monopolistic competition, where the firm is earning only normal profits?

A. MC =AC and P

B. MC = AC and P=MR

C. P =MC and P

D. MC=MR and P =AR= ATC

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4

Income-elasticity of demand is expressed as:

A. % change in quantity demanded % change in income

B. % change in income % change in quantity demanded

C. Change in income Change in quantity demanded

D. None of the above

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4

If as a result of an increase in prices, total outlay (expenditures) on a commodity decreases, its price-elasticity of demand is:

A. Perfect elastic (infinitely elastic)

B. Relatively elastic (greater than one elasticity)

C. Unit elastic

D. Relatively inelastic (less than one elasticity)

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The firm is said to be in equilibrium when the difference between revenue and cost is:

A. Maximum

B. Minimum

C. Zero

D. One

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In monopolistic competition, the firm take advantage due to customers:

A. Similar choices

B. Unlimited choices

C. Differential choices

D. Few choices

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4

If demand increased and supply decreased then:

A. Quantity exchanged might rise or fall and price would rise

B. Quantity exchanged would rise and price would fall

C. Quantity exchanged would rise and price might rise or fall

D. Both quantities exchanged and price would rise

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4

J.R.Hicks was:

A. Neo-classical economist

B. Classical economist

C. Keynesian economist

D. Post-Keynesian economist

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The main objective of the firm is to:

A. Face losses

B. Avoid losses

C. Bear losses

D. Make economic decisions

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If in the long run, output increases in the same proportion as increase in all the input in the given proportion, this is known as:

A. Increasing returns to scale

B. Decreasing returns to scale

C. Constant returns to scale

D. Variable returns to scale

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Moving along an indifference curve leaves the consumer:

A. Better off

B. Worse off

C. Neither better nor worse off

D. None of the above

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In income effect, we:

A. Move to another indifference curve

B. Move along given indifference curve

C. Move to lower indifference curve

D. Move to upper indifference curve

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4

Moving along the indifference curve leaves the consumer:

A. Better off

B. Worse off

C. In equilibrium

D. Neither better off nor Worse off

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4

The marshallian indirect utility function in the form of equation is:

A. x =a-bp

B. x =b-ap

C.

D. x = f(P)

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In Edgeworth model, if price falls below competitive price, the demand is:

A. More than maximum output

B. More than minimum output

C. Less than maximum output

D. Less than minimum output

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4

Marginal Productivity Theory deals with the theory of:

A. Distribution

B. Exchange

C. Market structure

D. Consumer behaviour

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Indifference curves are downward sloping and are drawn bowed toward the origin (convex to the origin) implying:

A. Consumers prefer to have less satisfaction than more of both commodities

B. As more and more of one commodity is obtained, less and less of the other must be given up to keep satisfaction constant

C. The total satisfaction obtained along an indifference curve decreases at an increasing rate

D. None of the above

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If by doubling all inputs in the long run output is less than double, it is a case of:

A. Increasing returns to scale

B. Decreasing returns to scale

C. Constant returns to scale

D. Variable returns to scale

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If the price of a product falls which of the following would occur?

A. Indifference curves shift down

B. Budget line shifts down

C. Indifference curve shift up

D. Budget line pivots

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The relationship between price effect, income effect and substitution effect is:

A. P.E = S.E + I.E

B. S.E = P.E +I.E

C. I.E = P.E +S.E

D. S.E = P.E +2I.E

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4

The budget constraint can be written as:

A. X.PX + Y.PY = 1

B. X.PX + Y.PY < 1

C. X.PX + Y.PY > 1

D. X.PX + Y.PY = 0

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In monopoly, new firms:

A. Can enter and exit

B. Partially can enter and exit

C. Cannot enter

D. None of the above

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In economist the term invisible hand is refers to:

A. Hand of God

B. Market self regulating system

C. Hands of invisible people

D. Regulations of government

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Using total revenue and total cost, a profit maximizing firm will be equilibrium at a point:

A. Where the gap between the two is the smallest

B. Where the gap between the two is the greatest

C. Where the two become equal

D. None of the above