MicroEconomics, Theory and Applications 1 MCQs

V

Vinay • 18.10K Points
Tutor I

Q 1. According to ----------- when income increases by a small increment, it leads to increasing marginal utility of income

(A) kaldor
(B) hicks
(C) markowitz
(D) friedman and savage
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M

Mohini Yadav • 26.78K Points
Instructor II

Q 2. --------- goods violate the law of demand after prices have risen above a certain level

(A) normal goods
(B) snob goods
(C) veblen goods
(D) bandwagon goods
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S

Shiva Ram • 20.56K Points
Instructor III

Q 3. CES production function is

(A) homogeneous
(B) linearly homogeneous
(C) linearly non homogeneous
(D) none of the above
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V

Vikash Gupta • 23.56K Points
Instructor III

Q 4. A significant property of Cobb Douglas production function is that the elasticity of substitution between inputs is

(A) equal to 1
(B) more than 1
(C) less than 1
(D) 0
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R

Rakesh Kumar • 18.39K Points
Tutor I

Q 5. Law of variable proportion is valid when:

(A) only one input is fixed and all other inputs are kept variable
(B) all factors are kept constant
(C) all inputs are varied in the same proportion
(D) none of these
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P

Priyanka Tomar • 25.20K Points
Instructor II

Q 6. If the marginal product of labour is below the average product of labour. It must be true that:

(A) marginal product of labour is negative
(B) marginal product of labour is zero
(C) average product of labour is falling
(D) average product of labour is negative
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G

Gopal Sharma • 27.68K Points
Instructor II

Q 7. Diminishing marginal returns implies:

(A) decreasing average variable costs
(B) decreasing marginal costs
(C) increasing marginal costs
(D) decreasing average fixed costs
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V

Vikash Gupta • 23.56K Points
Instructor III

Q 8. At the point of inflexion, the marginal product is:

(A) increasing
(B) decreasing
(C) maximum
(D) negative
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S

Shiva Ram • 20.56K Points
Instructor III

Q 9. An isoquant is ______ to an iso cost line at equilibrium point:

(A) convex
(B) concave
(C) tangent
(D) perpendicular
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V

Vinay • 18.10K Points
Tutor I

Q 10. Increasing returns to scale can be explained in terms of:

(A) external and internal economies
(B) external and internal diseconomies
(C) external economics and internal diseconomies
(D) all of these
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