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4

The general form of Cobb-Douglas production function is:

A.

B.

C.

D.

Correct Answer :

C.


Related Questions

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4

The supply curve would probably shift to the right if:

A. Resource( factors of production) used in production became more costly

B. The technology of production improves

C. Consumers income increased

D. Some sellers left the market

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4

Price effect occurs on the higher IC in case of:

A. Slutsky approach

B. Hicksian approach

C. Marshallian approach

D. None of the above

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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

The market demand shedule is determined by:

A. Adding up the prices consumers are wiling to pay at each quantity demanded

B. Multiply each consumers demand curve by the total number of consumers in the market

C. Adding the quantities denmanded by all consumers at each alternative price

D. None of the above

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4

Social costs equal private costs when:

A. Marginal cost is zero

B. Total cost is zero

C. External costs are zero

D. Average costs are zero

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4

Total costs in the short-term (short-run) are classified into fixed costs and variable costs. Which one of the following is a variable cost?

A. Cost of raw materials

B. Cost of equipment

C. Interest payment on past borrowing

D. Payment of rent on buildings

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4

According to marginalistic rule, the profit maximization hypothesis requires:

A. MC

B. MC>MR

C. MC=AP

D. MC=MR

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4

The short-run supply curve of the perfectly competitive firm is given by:

A. The rising portion of its MR over and above the break-even (shut-down) point

B. The rising portion of its MC over and above the break-even (shut-down) point

C. The rising portion of its MC over and above the AC curve

D. The rising portion of its MC curve

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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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4

When the output of a firm is increasing, its average fixed cost:

A. Declines continuously

B. Remains constant

C. Rises continuously

D. Declines and then rises

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4

In the long run average costs curve, a firm can change:

A. Labour

B. Capital

C. Both of them

D. None of them

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4

If the supply curve is not a straight line but curvilinear, the elasticity on all points of the supply curve is:

A. Equal

B. Different

C. Zero

D. Infinity

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4

Which of the following curves is a rectangular hyperbola?

A. ATC

B. AVC

C. AFC

D. None of the above

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4

Under perfect competition, at equilibrium, marginal cost is:

A. Less than marginal revenue

B. Equal to marginal revenue

C. More than marginal revenue

D. None of the above

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4

The advertisement and other selling activities:

A. Lessen the differentiation

B. Widen the differentiation

C. Does not effect the differentiation

D. All of the above

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4

When a consumer is in equilibrium then slope of indifference curve is:

A. Equal to the slope of budget line

B. Greater than the slope of budget line

C. Smaller than the slope of budget line

D. Parallel to the slope of budget line

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4

Consumers are likely to get a variety of similar goods under:

A. Monopoly

B. Perfect competition

C. Duopoly

D. Monopolistic competition

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4

In which case the elasticity shown by the different points of a curve is the same?

A. A straight line curve

B. A downward sloping demand curve

C. A rectangular hyperbola demand curve

D. None of the above

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4

The firm is at equilibrium where:

A. Output is maximum

B. Profit is maximum

C. Revenues are maximum

D. Profit is minimum

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4

The equilibrium of a firm is determined by the equality of MC and MR in only:

A. Under perfect competition

B. Under monopoly

C. Under imperfect competition

D. Under all the above market forms

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4

The Cambridge School of Thought refers to the group of English economists who came under the influence of:

A. Alfred Marshal

B. J.M.Keynes

C. Paul A.Samuelson

D. A.C.Pigou

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4

Rotten eggs are:

A. Free goods

B. Economic goods

C. Luxury goods

D. None of the above

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4

If the commodity is normal then price effect is:

A. Negative

B. Inverse

C. Positive

D. Both (a) and(b)

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4

Elasticity (E) expressed by the term, 1>E>0, is:

A. Perfectly elastic

B. Relatively elastic

C. Unitary elastic

D. Relatively inelastic

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4

A straight line, downward-sloping demand curve implies that, as price falls, the elasticity of demand:

A. Increases

B. Decreases

C. Remains the same

D. Is zero

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4

With firms having cost differences under perfect competition, a firm, which earns normal profit in the long-run is called:

A. An optimum firm

B. A representative firm

C. An oxford firm

D. A marginal firm

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4

Under the law of variable proportions, the average and the marginal product of the variable factor would ultimately:

A. Become equal

B. Decrease

C. Become constant

D. Increase

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4

The Purchasing Power Parity (PPP) Theory is presented by:

A. J.M.Keynes

B. E.D.Domar

C. Adam Smith

D. Gustav Cassel

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4

If two goods are perfect substitutes then IC will be:

A. Concave to the origin

B. Convex to the origin

C. Positively sloped

D. Negatively sloped

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4

According to translog production function, elasticity of substitution is:

A. Greater than one

B. Less than one

C. Zero

D. Equal to one