Q. According to ----------- when income increases by a small increment, it leads to increasing marginal utility of income
✅ Correct Answer: (C)
markowitz
MicroEconomics, Theory and Applications 1 MCQs and Notes
Q. --------- goods violate the law of demand after prices have risen above a certain level
✅ Correct Answer: (C)
veblen goods
Q. CES production function is
✅ Correct Answer: (B)
linearly homogeneous
Q. A significant property of Cobb Douglas production function is that the elasticity of substitution between inputs is
✅ Correct Answer: (A)
equal to 1
Q. Law of variable proportion is valid when:
✅ Correct Answer: (A)
only one input is fixed and all other inputs are kept variable
Q. If the marginal product of labour is below the average product of labour. It must be true that:
✅ Correct Answer: (C)
average product of labour is falling
Q. Diminishing marginal returns implies:
✅ Correct Answer: (C)
increasing marginal costs
Q. At the point of inflexion, the marginal product is:
✅ Correct Answer: (C)
maximum
Q. An isoquant is ______ to an iso cost line at equilibrium point:
✅ Correct Answer: (C)
tangent
Q. Increasing returns to scale can be explained in terms of:
✅ Correct Answer: (A)
external and internal economies