Mathematical Tools For Economics 2 Set 1

Bachelor of Arts in Economics (BA Economics)

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This set of Mathematical Tools for Economics 2 Multiple Choice Questions & Answers (MCQs) focuses on Mathematical Tools For Economics 2 Set 1

Q1 | If marginal revenue is Rs.25/- and elasticity of demand w.r.t price is 2, then theaverage revenue is
  • 50
  • 25
  • 75
  • 100
Answer: 50
Q2 | Cost is a function of
  • price
  • revenue
  • quantity
  • none of these
Answer: quantity
Q3 | An example of fixed inputs of production is
  • land
  • organisation
  • both a and b
  • none of these
Answer: both a and b
Q4 | Total variable cost plus total fixed cost gives
  • total cost
  • average cost
  • marginal cost
  • none of these
Answer: total cost
Q5 | Marginal cost of a function c = f(g) is
  • dc/dq
  • f\(q)
  • both a and b
  • none of these
Answer: both a and b
Q6 | The ratio of total cost to the quantity produced is called
  • average cost
  • marginal cost
  • total variable cost
  • none
Answer: average cost
Q7 | Sum of explicit cost and implicit cost gives:
  • total cost
  • average cost
  • marginal cost
  • none of these
Answer: total cost
Q8 | For a unitary elastic supply curve, ps is
  • less than 1
  • more than 1
  • equal to 1
  • zero
Answer: equal to 1
Q9 | Cross price elasticity may not always be
  • symmetrical
  • asymmetrical
  • both a and b
  • none
Answer: symmetrical
Q10 | Luxury goods are:
  • price inelastic
  • price elastic
  • both a and b
  • none
Answer: price elastic
Q11 | If close substitutes are available, then the elasticity of demand will be
  • low
  • moderate
  • high
  • optimum
Answer: high
Q12 | The relationship between supply and price is
  • negative
  • perfect
  • positive
  • none
Answer: positive
Q13 | The relationship between demand and price is
  • positive
  • negative
  • perfect
  • none
Answer: negative
Q14 | A given percentage change in price results in an equal percentage change in sales,indicates:
  • unitary price elasticity
  • inelastic price elasticity
  • elastic price elasticity
  • none
Answer: unitary price elasticity
Q15 | What is the order of differential equation = 10x + 5
  • first
  • second
  • third
  • fourth
Answer: first
Q16 | A line for linear equation should begin from
  • origin
  • x axis
  • y axis
  • any of the above
Answer: any of the above
Q17 | Functional relationship between input and output is called
  • isoquants
  • isocost
  • input function
  • production function
Answer: production function
Q18 | Law of variable proportion explainsfor
  • short run
  • long run
  • medium run
  • none
Answer: short run
Q19 | In CES production function, the elasticity of substitution is
  • unity
  • zero
  • negative
  • constant
Answer: constant
Q20 | The highest power to which the derivative of highest order is raised in differentialequation is called.
  • trace
  • order
  • degree
  • transpose
Answer: degree
Q21 | MRTS is the slope of
  • production function
  • priceline
  • isocostline
  • isoquant
Answer: isoquant
Q22 | Second stage in return to scale is called
  • increasing returns
  • diminishing returns
  • constant returns
  • negative returns
Answer: constant returns
Q23 | Slope of Total product Curve is called
  • mp
  • ap
  • tc
  • mc
Answer: mp
Q24 | For a function y=f(x), x1>x2 f(x)1> f(x2) says that the function is
  • increasing
  • decreasing
  • constant
  • none of these
Answer: increasing
Q25 | The points at which a curve is neither increasing not decreasing is called
  • turning point
  • stationery points
  • both a and b
  • none of these
Answer: both a and b
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