Competitive Exams: Economics MCQs (Practice-Test 38 of 122)

  1. The given diagrams represent incomeconsumption curves for two commodities X and Y: Consider the following statements based on the diagrams.

    1. I shows the commodity X as normal

    2. I shows the commodity Y as normal

    3. II shows the commodity X as normal

    4. II shows the commodity Y as normal

    Of these statements

    1. 1 and 3

    2. 1 and 3 are correct

    3. 1 and 4 and correct

    4. 2 and 4 are correct.

  2. Consider the following statements:

    1. As isoquant has a negative slope.

    2. isoquants should be parallel to each other.

    3. Isoquants can cut each other.

    4. Isoquants are convex to the origin.

    Of these statements

    1. 1 and 2 are correct

    2. 1 and 3 are correct

    3. 1 and 4 are correct

    4. 2 and 4 are correct

  3. Under conditions of perfect factor market, a firm would attain profit maximising combination of labour and capital, when

    1. Marginal Physical Product of Labour (MPPL) = Marginal Physical Product of Capital (MRPC)

    2. MRPL/Price of labour (PL)

    3. MRPL/PL = MARPC/PC = 1