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4

The law of variable proportions comes into being when:

A. All factors are variable

B. There is a fixed factor and variable factor

C. All factors are non-variable

D. None of the above

Correct Answer :

B. There is a fixed factor and variable factor


Related Questions

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4

Price elasticity of demand can be measured in the following way:

A. Percentage change in quantity demanded of a commodity divided by percentage change in price of that commodity

B. Change in quantity demanded of a commodity divided by change in price of that commodity

C. Percentage change in price of a commodity divided by percentage change in quantity demanded of that commodity

D. None of that commodity

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4

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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4

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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4

Marshallian demand function is also known as:

A. Utility demand function

B. Compensated demand function

C. Collective demand function

D. Relative demand function

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4

For monopolistic competitive firm:

A. P=AR and P>MR

B. P

C. P=MC and MC=AC

D. None of the above

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4

Technological efficiency:

A. Is the same as economic efficiency

B. Is achieved when the output produced is maximum for the given level of inputs

C. Means that there is only one way to produce a given quantity of output

D. None of the above

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4

Microeconomics is also known as:

A. Price theory

B. Demand theory

C. Supply theory

D. Income theory

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4

Which of the following formulae explain the term average revenue?

A. Total units /No. of Revenues

B. Total Revenue/No. of Units

C. Marginal Revenue × Units

D. Total Units/ Price

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4

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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4

In Prisoners Dilemma, both the prisoners are interrogated:

A. Separately in different cells

B. Collectively in different cells

C. Collectively in same cell

D. Separately in same cell

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4

The model which gives us information about price and output changes in different periods is:

A. Stable cobweb model

B. Perpetual oscillation

C. Both(a) and(b)

D. None of them

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4

One common definition of a luxury good is a good with income elasticity:

A. Greater than one

B. Equal to one

C. Less than one but more than zero

D. None of the above

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4

The falling part of total Utility (TU) curve shows:

A. Increasing marginal utility

B. Decreasing marginal utility

C. Zero marginal utility

D. Negative marginal utility

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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

In Prisoner Dilemma, the best choice of strategy is:

A. Stable

B. Unstable

C. Negative

D. Neutral

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4

When the level of optimal factor combination is over and more labor is employed with the fixed plant, the efficiency of labor:

A. Increases

B. Decreases

C. Remains constant

D. Becomes zero

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4

In economics, Externality means:

A. An externality is a cost or benefit which is not transmitted through prices

B. An externality is a cost or benefit which is transmitted through prices

C. An externality is a production received through external resources

D. None of the above

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4

If two households have identical preferences but different incomes then:

A. They must consume the same amounts of all goods

B. The wealthier one will have lower marginal utility for most goods

C. The wealthier one will have higher marginal utility for most goods

D. They will enjoy the same level of utility

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4

In economic term water is a:

A. Free good

B. Economic good

C. Both of the above

D. None of the above

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4

A loss bearing firm will continue to produce in the short run so long as the price at least covers:

A. Average variable cost

B. Average fixed cost

C. Average variable cost + average fixed cost

D. Marginal costs

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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

If production increases under increasing returns to scale, the cost will:

A. Increase at decreasing rate

B. Increase at constant rate

C. Decrease at increasing rate

D. Increase at increasing rate

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4

Plumbing and pipe-fitting require many of the same skills. If the wage paid to pipe-fitters increased then the effect on the market for plumbers would probably be:

A. An increase in demand

B. A decrease in demand

C. An increase in supply

D. A decrease in supply

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4

The budget line is described by each of the following except:

A. Prices of products are assumed to be fixed

B. The consumer need not to spend all his income

C. Consumer income is assumed to be fixed

D. The slope represents relative prices

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4

The General Theory of Employment, Interest and Money is the major work of :

A. N.Kaldor

B. Alfred Marshal

C. J.M.Keynes

D. J.S.Duesenberry

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4

Production function relates:

A. Cost to input

B. Wages to profits

C. Cost to output

D. Inputs to output

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4

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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4

In cournot model, each firm expects a reaction from his rival but the expected reaction is not:

A. important

B. materialized

C. accepted

D. rejected

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4

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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4

Law of Diminishing Marginal Utility is practically untrue because:

A. It is given to a lot of criticism

B. It is too difficult to be explained

C. It is based on assumptions which are unreal

D. Economists do not agree on this