Question 1

In an input-output matrix, the element ____shows the input industry II takes from industry I.

Accepted Answer

A)  a12
B)  a21
C)  a11
D)  a22 A

Question 2

In linear programming, the number of technical constraints will be ___the number of the factors of production:

Accepted Answer

A)  equal to
B)  smaller than
C)  greater than
D)  the same as D

Question 3

For a cost function TC = 3Q2 + 7Q +12, MC is :

Accepted Answer

A)  6Q
B)  6Q + 7
C)  3Q + 7
D)  undefined B

Question 4

If your income doubles and the prices of the goods you buy double, then your demand for these goods will likely ________

Accepted Answer

A)  increase
B)  not change
C)  decrease
D)  shift

Question 5

Feasible solution of LPP is:

Accepted Answer

A)  Values of decision variables satisfy the constraints
B)  Values of decision variables satisfy the objective functions
C)  Values of variable satisfy the objective functions
D)  the value of the objective function

Question 6

In linear programming, the dual of maximization is equal to:

Accepted Answer

A)  minimization
B)  Shadow Pricing
C)  Maximisation
D)  None of these

Question 7

MR is :

Accepted Answer

A)  the second order derivative of TR
B)  the first order derivative of TC
C)  the first order derivative of TR.
D)  the first order derivative of TR

Question 8

Linear Programming deals with:

Accepted Answer

A)  Constraints
B)  Inequalities
C)  Objective functions
D)  All the above

Question 9

A ____ is a point at which a function is at a relative maximum or minimum:

Accepted Answer

A)  plateau
B)  relative extremum
C)  inflection
D)  critical value

Question 10

In Cobb Douglas Production of functions, the elasticity of Substitutions is :

Accepted Answer

A)  greater than one
B)  equal to one
C)  less than one
D)  None of these

Question 11

In linear programming, _____ expresses the necessity that the levels of production of the commodity cannot be negative, that is, it should be either positive or zero.

Accepted Answer

A)  the technical constraints
B)  objective functions
C)  non negativity constrains
D)  primal

Question 12

In input-output analysis,____ is obtained by dividing the input of the desired sector by the total output of the same sector.

Accepted Answer

A)  the transaction matrix
B)  a technology coefficient
C)  non negativity constrains

Question 13

In optimisation, with the first order derivative equal to ___ and the second order derivative ___ the function is at a maximum.

Accepted Answer

A)  0, 0
B)  0, 
C)  0, > 0
D)  > 0, 0

Question 14

When we optimise a function, with the first order derivative equal to ___ and the second order derivative ___ the function is at a relative minimum.

Accepted Answer

A)  0, 0
B)  0, 
C)  0, > 0
D)  > 0, 0

Question 15

In linear programming, _____are expressed as inequalities, rather than equalities.

Accepted Answer

A)  the technical constraints
B)  objective functions
C)  dual
D)  primal

Question 16

The first derivative measures the rate of change or ____ of a function:

Accepted Answer

A)  intercept
B)  convexity
C)  slope
D)  concavity

Question 17

In input-output analysis,if the exogenous sectors of the open input output model is absorbed in to the system as just another sector _____

Accepted Answer

A)  the transaction matrix
B)  a technology coefficient
C)  Leontief closed model

Question 18

The process of finding relative maximum or minimum of a function is known as :

Accepted Answer

A)  optimization
B)  minimisation
C)  maximisation
D)  any of these

Question 19

A production function is said to be _____, if, when each input factor is multiplied by a positive real constant k, the constant can be completely factored out:

Accepted Answer

A)  homogenou
B)  nonhomogenous
C)  additive
D)  heterogonous

Question 20

In input-output analysis, ___ represents in monetary terms or quantitative terms all the transactions of the economic system.

Accepted Answer

A)  the transaction matrix
B)  objective functions
C)  non negativity constrains

Exam 6: Economics and Linear Programming: Understanding Concepts and Terminologies