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Technological Progress (Invention) can be defined as:

A. Technological progress shifts the production function by allowing the firm to achieve more output from a given combination of inputs (or the same output with fewer inputs)

B. Technological progress shifts the production function by allowing the firm to achieve less output from a given combination of inputs (or the same output with more inputs)

C. Technological progress shifts the import function to the right

D. None of the above

Correct Answer :

A. Technological progress shifts the production function by allowing the firm to achieve more output from a given combination of inputs (or the same output with fewer inputs)


Related Questions

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Of the following, which one is a characteristic of monopolistic competition?

A. Standardized product

B. Differentiate product

C. Two firms

D. No entry

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Repetition of a game (Repeated Game):

A. Yields the same outcome over and over

B. Can result in behavior that is different from what it would be if the game were played once

C. Is not possible

D. Makes cooperative games into noncooperative games

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The competitive equilibrium leads to:

A. The firms producing with excess capacity

B. The firms producing at their minimum costs

C. Firms producing at a cost higher than the minimum

D. Some firms producing under decreasing costs and others under increasing costs

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For the equilibrium of the firm and the industry in the short period in a competitive market, the condition is:

A. P = AC

B. P = MC

C. AC = MC

D. MC = TR

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MRSxy measures:

A. The amount of Y a consumer is willing to give up to obtain one additional unit of X and still remain on the same indifference curve

B. The amount of X a consumer is willing to give up to obtain one additional unit of Y and still remain on the same indifference curve

C. The amount of Y a consumer is willing to give up to obtain one additional unit of X and move to a higher indifference curve

D. The amount of X a consumer is willing to give up to obtain one additional unit of Y and move to a higher indifference curve

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In 1776, a famous book An enquiry into the nature and causes of the wealth of nation was written by:

A. J.S.Mill

B. Adam Smith

C. Robert Malthus

D. David Ricardo

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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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Change in demand (rise and fall of demand) is:

A. Due to change in price while other factors remain constant

B. Due to change in factors other than price

C. Both a and b

D. None of the above

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The demand curve of ostentation goods (Veblen goods) will be:

A. Negatively sloped

B. Positively sloped

C. Parallel to X-axis

D. None of the above

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In the case of superior (normal) commodity, the income elasticity of demand is:

A. Positive

B. Unitary

C. Negative

D. Infinite

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Price discrimination is possible:

A. Only under monopoly situation

B. Under any market form

C. Only under monopolistic competition

D. Only under perfect competition

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Which of the following is called Gossens first law?

A. Law of production

B. The Law of Equi-Marginal Utility

C. The Law of Diminishing Marginal Utility

D. Law of Variable Proportions

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Cross-demand curve shows:

A. The effect of a change in price of X on its demand

B. The effect of a change in price of X on the demand for Y

C. The effect of a change in price of Y on its demand

D. None of the above

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The number of firms in monopolistic competition normally range between:

A. 14 to 28

B. 14 to 80

C. 14 to 38

D. 14 to 60

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The cournot model is a model of:

A. Instable equilibrium

B. Stable equilibrium

C. Constant equilibrium

D. Fluctuating equilibrium

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According to the principle of substitution?

A. Many goods have no effective substitutes

B. Nearly all goods have substitutes

C. The prices of substitute goods must be the same

D. Buyers will stop buying a good if its price rises

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In the case of a giffen good, the income effect:

A. Is equal to the substitution effect

B. More than offsets the substitution effect

C. Reinforces the substitution effect

D. Only partially offsets the substitution effect

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In first degree price discrimination, monopolist takes away :

A. All of the consumer surplus

B. All of the producer surplus

C. Some part of the consumer surplus

D. None of them

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With elasticity of demand, the:

A. Negative sign is ignored

B. Positive sign is ignored

C. None of them

D. Both of them

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In the theory of firm, Chamberline presented the idea of:

A. Rising cost

B. Falling cost

C. Rising input

D. Falling input

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Contraction in demand occurs when:

A. Price increases and demand decreases

B. Price increases but demand also increases

C. Price remains constant but demand falls down

D. Price falls down but demand remains constant

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The MC curve cuts the AVC and ATC curves:

A. At different points

B. At the falling parts of each

C. At their respective minimums

D. At the rising parts of each

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In case of short-run, the supply curve of an industry is the horizontal summation of:

A. Marginal cost curves

B. Average cost curves

C. Total cost curves

D. None of the above

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Traditionally, the study of determination of price is called:

A. Theory of price

B. Theory of value

C. Theory of labor

D. Theory of cost

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In monopolistic competition, the firms have to face:

A. Same cost conditions

B. Different cost conditions

C. Same price conditions

D. Same products conditions

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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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Marginal revenue from a given output:

A. The price at which the marginal unit sells

B. Total revenue sale of all units divided by volume of sales

C. Average revenue of total output average revenue of last unit

D. The change in total revenue resulting from the sale of one unit more of output

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Excess capacity is concerned with the:

A. V-shaped traditional cost curves

B. S-shaped traditional cost curves

C. Modern cost curves

D. U-shaped traditional cost curves

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Increase in demand occurs when:

A. The price falls and the demand also falls down

B. The price increases but demand falls down

C. The price increases the demand remains constant and when the price remains constant the demand goes up

D. The price remains constant but demand falls

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Which of the following statement is wrong?

A. A utility function refers to a particular individual and reflects the tastes of that individual

B. When the tastes of an individual changes, his utility function changes(shifts)

C. Different individuals usually have different tastes and thus have different utility functions

D. Different individuals have same tastes and thus have the same utility function