Deck 2: Economics and Calculus

Question 1

The ratio of capital to labour is called

A) average product of labour
B) average product of capital
C) factor intensity
D) none of these

Answer 1

factor intensity

Question 2

For profit maxmisation we must have

A) mr = mc
B) mc curve cut mr curve from below
C) both a and b
D) none of these

Answer 2

both a and b

Question 3

For a function y = f(x1,x2), the total differential is given by

A) dy = f1dx1 + f2dx2
B) dy = f1dx2 + f2dx1
C) both a and b
D) none of these

Answer 3

dy = f1dx1 + f2dx2

Question 4

The nature of tax multiplier is

A) positive
B) zero
C) negative
D) none

Question 5

The inflexion points of the function y = x3 - 3x2 + 5 is at

A) 3
B) 6
C) 1
D) 0

Question 6

If marginal revenue is Rs. 25/- and elasticity of demand w. r. t price is 2, then the average revenue is

A) 50
B) 25
C) 75
D) 100

Question 7

The output of a firm, with given prices of factors of production is decided so that the total cost is

A) maximum
B) balanced
C) minimum
D) positive

Question 8

The minimal value of the function y = x4 - 4x3 + 16x is at

A) -1
B) 2
C) -2
D) 1

Question 9

For two goods 1 and 2, if E12 > 0 implies that the two goods are

A) complementary
B) substitutes
C) supplementary
D) giffen goods

Question 10

If fxxfyy < (fxy)2 when fxx and fyy are of the same sign, then the function is at

A) minimum point
B) maximum point
C) inflexion point
D) saddle point