Mathematical Economics Set 5

Bachelor of Arts in Economics (BA Economics)

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This set of Mathematical Economics Multiple Choice Questions & Answers (MCQs) focuses on Mathematical Economics Set 5

Q1 | ______ function expresses the relationship between price of the good and quantity of thegood demanded.
  • Supply
  • Consumption
  • Demand
  • Income
Answer: Demand
Q2 | ______ function expresses the relationship between price of the good and quantity of thegood supplied.
  • Supply
  • Consumption
  • Demand
  • Income
Answer: Supply
Q3 | Function which map the relation between the physical measure of money and the perceivedvalue of money is _____
  • Income
  • Investment
  • Demand
  • Utility
Answer: Utility
Q4 | _______ function was designed by J M Keynes to show the relationship between realdisposable income and consumer spending.
  • Consumption
  • Investment
  • Demand
  • Utility
Answer: Consumption
Q5 | Given the consumption function C = a + bY, where ‘a’, the intercept, represents_____
  • Income
  • autonomous consumption
  • Demand
  • Saving
Answer: autonomous consumption
Q6 | Given the consumption function C = a + bY, the slope ‘b’ represents:
  • MPS
  • autonomous consumption
  • MPC
  • Saving
Answer: MPC
Q7 | For equilibrium market, the condition is____
  • Demand > supply
  • demand
  • demand = supply
  • None of these
Answer: demand = supply
Q8 | Given TR = 10x, TC = 5x+2, profit function is :
  • 5x – 2
  • 5x
  • 10x – 5x
  • 5x + 2
Answer: 5x – 2
Q9 | Demand function for a commodity is D = 44 – 7P and supply function S = 2P –10, then theequilibrium price is:
  • 4
  • 6
  • 8
  • 10
Answer: 6
Q10 | If u = xnis total utility, the functions of marginal utility u will be:
  • nxn+1
  • nxn-1
  • xn+1
  • n 1xn
Answer: nxn-1
Q11 | When the total revenue functions is R = 100−X2, the marginal revenue is :
  • 100 – 2X
  • 100
  • −2X
  • −X2
Answer: −2X
Q12 | The cost per output is given by C = 2x + 27. Then the marginal cost when x = 5 is:
  • 2
  • 27
  • 47
Answer: 47
Q13 | When elasticity of demand is 2, the demand will be:
  • Perfectly elastic
  • Perfectly inelastic
  • Relatively elastic
  • Unit elastic
Answer: Relatively elastic
Q14 | The Price elasticity of demand for a product is 1.5 and its MR = 8, find its price:
  • 12
  • 24
  • 53
  • 16
Answer: 24
Q15 | The elasticity of demand for the demand curve of a firm under perfect competition is
  • 1
  • 0
  • -1
  • α
Answer: α
Q16 | Given a total utility function, Marginal utility is obtained by finding ______
  • First derivative
  • Second derivative
  • Integral
  • Coefficient
Answer: First derivative
Q17 | Mathematically ____ is the first derivative of the consumption function.
  • MPS
  • MPC
  • MPI
  • GDP
Answer: MPC
Q18 | ____ indicates what proportion of the increased income will be saved.
  • MPS
  • MPC
  • MPI
  • GDP
Answer: MPS
Q19 | _____ measures the change in TP due to a one unit change in the quantity of labour used:
  • MPC
  • MPS
  • MPI
  • MPPL
Answer: MPPL
Q20 | ____ refers to the change in total cost (TC) due to the production of an additional unit ofoutput.
  • MPC
  • MC
  • MPI
  • MPPL
Answer: MC
Q21 | 𝑀𝑃𝐿 𝑀𝑃𝐾 = ____
  • MPC
  • MC
  • MRTSLK
  • MPPL
Answer: MRTSLK
Q22 | The slope of ___curve will be positive if and only if the marginal cost curve lies above theAC curve.
  • AC
  • MC
  • ATC
  • MP
Answer: AC
Q23 | At a price of Rs11.00, quantity demanded is 90; and at a price of Rs.9.00, quantity demandedis 110. The price elasticity of demand is:
  • 0.8
  • 1
  • 1.5
  • -1.22
Answer: -1.22
Q24 | For complementary goods the cross elasticity of demand will be ______
  • negative
  • zero
  • positive
  • any of these
Answer: negative
Q25 | Necessities have _____ elasticity of demand of between 0 and +1.
  • cross
  • price
  • income
  • any of these
Answer: income
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