61
An Iso-cost line represents
A)
Combinations of two inputs which yield varying amounts of output
B)
Combinations of two inputs which cost the same amount to a firm
C)
Combinations of two inputs which yield the same amount of output
D)
Combinations of two inputs which cost different amounts of outlay to a firm
Answer & Solution
Answer: Option
B
62
Statement I Costs which do not take the form of cash outlays, nor do they appear in the accounting system are known as opportunity cost.Statement II Costs in the form of depreciation allowances and unpaid interest on the owner's own funds are known as sunk cost.
A)
Both staements are correct
B)
Both statements are incorrect
C)
Statement I is correct and Statement II is incorrect
D)
Statement I is incorrect and Statement II is correct
Answer & Solution
Answer: Option
B
63
If two goods are perfect substitutes for each other, it necessarily follows that
A)
An indifference curve relating the two goods will be curvilinear
B)
An indifference curve relating the two goods will be linear
C)
An indifference curve relating the two goods will be divided into two segments which meet at a right angle
D)
An indifference curve relating the two goods will be convex to the origin
Answer & Solution
Answer: Option
B
64
Under perfect competition, a firm will be in equilibrium when its AC is
A)
Covering only prime costs of production
B)
At a minimum
C)
At a maximum
D)
Covering wages and salaries only
Answer & Solution
Answer: Option
B
65
From the following two statements of Assertion (A) and Reasoning (R) , indicate the correct option.Assertion (A) The quantity of a product demanded invariably changes inversely to changes in its price.Reason (R) The price effect is the net result of the positive substitution effect and negative income effect.
A)
Both (A) and (R) are correct
B)
Both (A) is incorrect, but (R) is correct
C)
Both (A) is correct, but (R) is incorrect
D)
Both (A) and (R) are incorrect
Answer & Solution
Answer: Option
B
66
When the average product is at its maximum, the equality can be reached between
A)
The marginal product and primary product
B)
The marginal product and average product
C)
The marginal product and total product
D)
The marginal product and final product
Answer & Solution
Answer: Option
B
67
Under perfect market and in case of decreasing marginal cost the firm's quilibrium with respect to level of production
A)
Cannot be achieved
B)
Can be achieved after a high level of output
C)
Can be achieved after a small level of output
D)
Will result in run-away inflation
Answer & Solution
Answer: Option
A
68
Which of the following is most closely connected with Paul A. Samuelson?
A)
Liquidity preference theory
B)
Marginal utility analysis
C)
Revealed preference theory
D)
Indifference curve analysis
Answer & Solution
Answer: Option
C
69
Match the following:
List-I (Cost) List-II (Formula)
a. Average fixed cost
1. $$\frac{{{\text{Total Fixed Cost}}}}{{{\text{Quantity}}}}$$
b. Average variable cost
2. $$\frac{{{\text{Total Variable Cost}}}}{{{\text{Quantity}}}}$$
c. Average total cost
3. $$\frac{{{\text{Total Cost}}}}{{{\text{Quantity}}}}$$
d. Marginal cost
4. $${\text{Total production}} + {\text{One addition production}}$$
A)
a-1, b-4, c-3, d-2
B)
a-1, b-2, c-3, d-4
C)
a-3, b-1, c-2, d-4
D)
a-1, b-3, c-2, d-4
Answer & Solution
Answer: Option
B
70
Match the items given in List-I with those given in the List-II and suggest the correct option.
List-I List-II
a. Marginal productivity/Average productivity
1. Isoquant curve
b. Substitutability of inputs
2. Isocost line
c. Constant negative slope
3. Production Function
d. Convex to origin
4. Elasticity of production
A)
a-1, b-2, c-3, d-4
B)
a-2, b-1, c-4, d-3
C)
a-4, b-3, c-2, d-1
D)
a-3, b-4, c-1, d-2
Answer & Solution
Answer: Option
C
