## MicroEconomics, Theory and Applications 1 MCQs

V

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

M

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

S

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Q 3. CES production function is

V

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

R

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Q 5. Law of variable proportion is valid when:

P

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

G

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Q 7. Diminishing marginal returns implies:

V

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

S

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

V