11
Which of the following is/are the assumptions of indifference curve analysis?
A)
Utility is ordinal
B)
Diminishing MRS
C)
Consistency and transivity of choice
D)
All of the above
Answer & Solution
Answer: Option
D
12
The Law of equi-marginal utility tells that if price of commodity falls
A)
More units of it will be bought
B)
Same units of it will be bought
C)
Less units of it will be marginal bought
D)
Nothing of it will be bought
Answer & Solution
Answer: Option
A
13
The marginal utility of a product is measured by
A)
total cost
B)
average cost
C)
marginal cost
D)
price
Answer & Solution
Answer: Option
D
14
Calculate elasticity of demand:
A)
2
B)
0.5
C)
4
D)
6
Answer & Solution
Answer: Option
A
15
Match the following.
List-I (Values of MRSxy ) List-II
a. MRSxy is diminishing
1. L shaped indifference curve
b. MRSxy is constant
2. Indifference curve is concave to the origin
c. MRSxy is increasing
3. Indifference curve is straight line sloping downwards to the right
d. MRSxy is zero
4. Indifference curve must be convex to the origin
A)
a-1, b-2, c-3, d-4
B)
a-1, b-3, c-2, d-4
C)
a-4, b-3, c-2, d-1
D)
a-2, b-4, c-3, d-1
Answer & Solution
Answer: Option
C
16
Indicate the correct answer from the following types of the long run average cost curves on which the minimum average cost of production in long run can be determined.
A)
1, 2 and 3
B)
2, 3 and 4
C)
1, 3 and 4
D)
Both 2 and 4
Answer & Solution
Answer: Option
C
17
The relationship between elasticity of demand (e), AR and MR can be established as
A)
$$e = \frac{{AR}}{{MR - AR}}$$
B)
$$e = \frac{{AR}}{{AR - MR}}$$
C)
$$e = \frac{{MR}}{{MR - AR}}$$
D)
$$e = \frac{{MR}}{{AR - MR}}$$
Answer & Solution
Answer: Option
B
18
All of the following curves are U-shaped except
A)
The AC curve
B)
The AFC curve
C)
The AVC curve
D)
The MC curve
Answer & Solution
Answer: Option
B
19
For the purpose of measuring national income in India, CSO uses which of the following methods?
A)
Net output method
B)
Income method
C)
Expenditure method
D)
All of these
Answer & Solution
Answer: Option
C
20
The marginal revenue equation can be derived from the
A)
demand equation
B)
supply equation
C)
cost equation
D)
price equation
Answer & Solution
Answer: Option
A
