# ICAR NET (UG/PG): Economics MCQs (Practice_Test 115 of 122)

- Which one of the following pairs is NOT correctly matched?
- Revealed Preference theory
- Samuelson

- Indifference curve Analysis
- Hicks

- Cardinal Utility
- Joan Robinson

- Input-output Analysis
- Leontief

- Which one of the following statements is NOT correct?
- Different points on an indifference curve stand for different combinations of two goods.
- different points on the consumption possibility line stand for a different combination of two goods.
- all points on an indifference curve stand for the same level of satisfaction.
- All points on the consumption possibility line stand for the same level of satisfaction.

- Given a consumers ′ utility function U = x1 × 2 and his budget constraint M = P1 × 1 + P2 × 2, at equilibrium, the demand function for x1 will be
- N/A
- N/A
- N/A
- N/A

- if the demand curve is a rectangular hyperbola, then numerical elasticity of demand is equal to
- 0.25
- 0.75
- 1.00
- 0.50

- Consider the following data: Price per kg (₹) = Demand for wheat (kg) 12 5 10? When the price of wheat is ₹ 10 per kg and the demand is unit-elastic, the demand for wheat in kg would be
- 5
- 6
- 10
- 12

- the elasticity of output with respect to labour is equal to one, when average product of labour is
- equal to the wage rate
- equal to the average product of capitals
- equal to its marginal product
- greater than its marginal product

- if product isoquants are drawn as straight lines, it implies that
- marginal rate of technical substitution (MRTS) is equal to MRTS equals the ratio of factor prices
- the marginal products of the inputs equal the respect factor prices.
- the marginal products of the inputs equal the respectivly factor prices
- MRTS is constant but not necessarily equal to 1

- consider the following statements: At the point of equality between average product and marginal product, average product is
- maximum
- 2 minimum
- constant
- rising

Which of the above statements are correct?

- 1 and 4
- 2 and 4
- 1 and 3
- 2 and 3

- Given a production function with two input x1 and x2 and their prices r1 and r2, the optimal combination of inputs is one for which
- marginal products of x1 and x2 are equal
- MRTSx1 × 2/MRTS x2 × 1 = r1/r2
- MPx1/MPx2 = r1/r2
- MPx2/MPx1 = r1/r2

- Consider the following groups of items:
- Factory buildings
- Plant and machinery
- Stocks of raw materials
- the wage bill

Which of these are known as work capital?

- 1 and 2
- 3 and 4
- 1,2 and 3
- 2,3 and 4

- Which one of the following statements is correct?
- an employer will continue to hire units of a variable factor until marginal revenue product (MRP) becomes equal to money wages
- an employer hires a variable factor input up to the point where diminishing returns begin to operate.
- An employer hires a variable factor input until its marginal revenue product (MRP) becomes aero.
- Variable factors are employed until their MRPs become equal to one another

- Consider the following statements: For a firm to be in equilibrium
- MR = Mc
- MC curve must cut MR cure from below at the point of equilibrium
- TR = TC

Which of the above statements are correct?

- 1 and 2
- 1 and 3
- 2 and 3
- 1,2 and 3

- the short-run supply curve of a firm under perfect competition is the same as
- average variable cost curve
- marginal cost curve
- marginal cost curve above average variable cost curve
- average total cost curve

- when marginal cost is less than average cost, average cost is
- falling
- rising
- minimum
- zero

- In the two-inputs case, if the product isoquants are l-shaped, the inputs are
- perfect substitutes for each other
- perfect complementary to each other
- independent of each other
- not predicable