Match the following.
| List-I | List-II |
| a. Fixed costs | 1. Fall at first and then rise as the firm approaches full capacity |
| b. Variable costs | 2. Continue to fall at rate proportionate with the increase in output |
| c. Total costs | 3. Are those costs which do not increase as output increases |
| d. Average total costs | 4. Are the amount paid to all the factors employed in producing the output |
| e. Average fixed costs | 5. Are those costs which increase as output increase |
A. a-3, b-5, c-4, d-1, e-2
B. a-4, b-5, c-1, d-2, e-3
C. a-5, b-4, c-3, d-1, e-2
D. a-1, b-2, c-3, d-4, e-5
Answer: Option A
The capital that is consumed by an economy or a firm in the production process is known as
A. Capital loss
B. Production cost
C. Dead-weight loss
D. Depreciation
Who propounded the opportunity cost theory of international trade?
A. Ricardo
B. Marshall
C. Heckscher & Ohlin
D. Haberler
Which among the following statement is INCORRECT?
A. On a linear demand curve, all the five forms of elasticity can be depicted
B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.
C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.
D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.
A. Increase
B. Decrease
C. Remain the same
D. Become zero
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