Competitive Exams: Economics MCQs (Practice_Test 38 of 122)

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  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

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