Economics MCQ Questions and Solutions with Explanations | Commerce

Operation generated forecasts often not to do with

When total utility is maximum, then marginal utility is

A perfectly competitive firm maximizes its profit by producing output at which its marginal cost equals its

When labour is plotted on X-axis and capital is plotted on Y-axis and an isoquant is prepared, then which of the following statement(s) is/are false?
1. Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant.
2. Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour.
3. Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.

Match the items of List-I with those of List-II

List-I	List-II
a. Substitute goods	1. Negative cross elasticity
b. Complementary goods	2. Low price elasticity
c. Giffen goods	3. Positive cross elasticity
d. High-income group	4. Positive price elasticity

Globalization is the term used to describe process of removal of restriction on which one of the following?

In the long run, the cost and output relationship depends on:

The basic characteristic of a capitalistic economy is

The production function Y = LK is

Demand must have the elements