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4

The slope of the iso-cost line (budget line) is determined by:

A. Pricing of two factors

B. Productivity of the two factors

C. Degree of substitutability of two factors

D. None of the above

Correct Answer :

A. Pricing of two factors


Related Questions

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4

Engel curves shows that:

A. How commoditys consumption rate differs at various levels of price

B. How commoditys consumption rate differs at various levels of satisfaction

C. How commoditys consumption rate differs at various levels of income

D. How commoditys consumption rate differs at various levels of taxes

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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

When was Adam Smiths major work An Enquiry into the Nature and Causes of Wealth of Nations published?

A. 1756

B. 1777

C. 1776

D. 1801

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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

Contraction of demand means:

A. Less quantity demanded at the same price

B. Less quantity demanded at a higher price

C. Less quantity demanded at a lower price

D. None of the above

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4

LMC represents change in LTC (long-run total cost) due to producing an additional unit of a good while the fixed and variable factors:

A. Cannot be changed

B. Can be changed

C. Can partially be changed

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

The long-run AC curve is constructed from:

A. The minimum points on all short-run AC curves

B. The lowest points on the short-run MC curve

C. The minimum points on the short run AVC curves

D. It has nothing to do with the short-run cost curves

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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

The main contribution of Adam Smith is in the field of:

A. Economics of state

B. Wealth of Nations

C. Value and price

D. Theory of demand

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4

The amount of income left over for a consumer in equilibrium is :

A. Consumer surplus

B. Zero

C. Two rupees

D. Excess demand

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4

The Law of Proportionality is another name of:

A. The law of diminishing marginal utility

B. The law of demand

C. The Law of Diminishing Returns

D. The law of supply

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4

We can measure consumers surplus with the help of

A. TU curve

B. MU curve

C. Supply curve

D. None of the above

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4

The budget-line is also known as the:

A. Iso-utility curve

B. Production possibility line

C. Isoquant

D. Consumption possibility line

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4

The advantage of using indifference curves rather than marginal utilities is:

A. We do not need to attach util values to consumption

B. Consumers can attain higher utility

C. It takes into account how much income the household has

D. We can determine how much of one good the consumer is willing to sacrifice in order to consume one more unit of another

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4

Which of the following theories of trade cycle was presented by William Jevons?

A. Sunspot Theory

B. Monetary Theory

C. Saving-Investment Theory

D. Innovation Theory

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4

Even in the long-run equilibrium, the pure monopolist can make abnormal profits because of:

A. Advertising

B. His low LAC

C. Blocked entry

D. High price he charges

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4

The cross-price elasticity of the demand for orange juice with respect to the price of apple juice is probably:

A. Negative

B. Positive

C. Near infinite

D. Zero

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4

Kinked Demand Curve is consistent with which one of the following market situations?

A. Pure competition

B. Pure monopoly

C. Oligopoly

D. Monopolistic competition

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4

On an indifference map higher indifference curves show:

A. The same level of price

B. The same level of satisfaction

C. The higher level of satisfaction

D. The lower level of satisfaction

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4

The fundamental choices that a society must make about the use of its resources include:

A. How much to produce

B. How to produce

C. How to distribute

D. All of the above

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4

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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4

The engineering production function and engineering costs curves are concerned with the:

A. Production cost

B. Collection cost

C. Raw material costs

D. Distribution costs

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4

Identify the factor, which generally keeps the price elasticity of demand for a commodity low:

A. Variety of uses for that commodity

B. Its low price

C. Close substitutes for that commodity

D. High proportion of the consumers income spent on it

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4

The production process is:

A. Consuming goods and services

B. Transforming inputs into outputs

C. Wasting goods and services

D. Buying goods and services

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4

Under monopolistic competition, the products sold by the firms are:

A. Economic substitutes

B. Technical substitutes

C. Both a and b

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

Elasticity of supply means change in supply due to change in:

A. Price of the commodity

B. Conditions of supply

C. Taste of the consumer

D. Demand for the commodity

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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

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4

Theory of revealed preference is based on:

A. Weak orderings

B. Neutral orderings

C. Partial orderings

D. Strong orderings