Mathematical Economics Set 6

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 6

Q1 | If your income doubles and the prices of the goods you buy double, then your demand forthese goods will likely ________
  • increase
  • not change
  • decrease
  • shift
Answer: not change
Q2 | Football socks are found to have a cross-elasticity of demand of −2 with respect to productY. Which of the following products is most likely to be product Y:
  • Cricket boots
  • Tennis shoes
  • Tennis socks
  • Football boots
Answer: Football boots
Q3 | The process of finding relative maximum or minimum of a function is known as :
  • optimization
  • minimisation
  • maximisation
  • any of these
Answer: optimization
Q4 | A ____ is a point at which a function is at a relative maximum or minimum:
  • plateau
  • relative extremum
  • inflection
  • critical value
Answer: relative extremum
Q5 | The value of Lagrange multiplier λ gives the approximate change in the objective functioncaused by a small change in the:
  • constant of the constraint
  • objective function
  • variables in the constraint
  • any of these
Answer: constant of the constraint
Q6 | The first derivative measures the rate of change or ____ of a function:
  • intercept
  • convexity
  • slope
  • concavity
Answer: slope
Q7 | For a cost function TC = 3Q2+ 7Q +12, MC is :
  • 6Q
  • 6Q + 7
  • 3Q + 7
  • undefined
Answer: 6Q + 7
Q8 | In optimisation, with the first order derivative equal to ___ and the second order derivative___ the function is at a maximum.
  • 0, 0
  • 0, < 0
  • 0, > 0
  • > 0, 0
Answer: 0, < 0
Q9 | When we optimise a function, with the first order derivative equal to ___ and the secondorder derivative ___ the function is at a relative minimum.
  • 0, 0
  • 0, < 0
  • 0, > 0
  • > 0, 0
Answer: 0, > 0
Q10 | In Cobb Douglas Production of functions, the elasticity of Substitutions is :
  • greater than one
  • equal to one
  • less than one
  • None of these
Answer: equal to one
Q11 | Feasible solution of LPP is:
  • Values of decision variables satisfy the constraints
  • Values of decision variables satisfy the objective functions
  • Values of variable satisfy the objective functions
  • the value of the objective function
Answer: Values of decision variables satisfy the objective functions
Q12 | In linear programming, the dual of maximization is equal to:
  • minimization
  • Shadow Pricing
  • Maximisation
  • None of these
Answer: minimization
Q13 | Linear Programming deals with:
  • Constraints
  • Inequalities
  • Objective functions
  • All the above
Answer: All the above
Q14 | A production function is said to be _____, if, when each input factor is multiplied by apositive real constant k, the constant can be completely factored out:
  • homogenou
  • nonhomogenous
  • additive
  • heterogonous
Answer: homogenou
Q15 | ____ functions are a special class of homogeneous function in which the marginal rate ofTechnicalsubstitution is constant along the function.
  • Hypothetic
  • Homothetic
  • Objective
  • Value
Answer: Homothetic
Q16 | In linear programming, the number of technical constraints will be ___the number of thefactors of production:
  • equal to
  • smaller than
  • greater than
  • the same as
Answer: the same as
Q17 | In linear programming, _____are expressed as inequalities, rather than equalities.
  • the technical constraints
  • objective functions
  • dual
  • primal
Answer: the technical constraints
Q18 | In linear programming, _____ expresses the necessity that the levels of production of thecommodity cannot be negative, that is, it should be either positive or zero.
  • the technical constraints
  • objective functions
  • non negativity constrains
  • primal
Answer: non negativity constrains
Q19 | In input-output analysis, ___ represents in monetary terms or quantitative terms all thetransactions of the economic system.
  • the transaction matrix
  • objective functions
  • non negativity constrains
  • the
Answer: the transaction matrix
Q20 | In input-output analysis,____ shows the number of units of any industry’s output needed toproduce one unit of another industry’s output.
  • the transaction matrix
  • The technical coefficients
  • non negativity constrains
  • the
Answer: The technical coefficients
Q21 | In input-output analysis,____ is obtained by dividing the input of the desired sector by thetotal output of the same sector.
  • the transaction matrix
  • a technology coefficient
  • non negativity constrains
  • the
Answer: a technology coefficient
Q22 | In input-output analysis,when the technical coefficients are put in the form of a matrix, weget the______
  • the transaction matrix
  • a technology coefficient
  • non negativity constrains
  • the
Answer: the
Q23 | In input-output analysis,if the exogenous sectors of the open input output model is absorbedin to the system as just another sector _____
  • the transaction matrix
  • a technology coefficient
  • Leontief closed model
  • the
Answer: Leontief closed model
Q24 | In an input-output matrix, the element ____shows the input industry II takes from industry I.
  • a12
  • a21
  • a11
  • a22
Answer: a12
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