Multi-choice 4 Question 1) In CES production function elasticity of factor substitution is______ Answers Option 1 Unity Option 2 Zero Option 3 Infinite Option 4 Can take any positive constant value Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 2) In the second stage of the law of variable prodution_____ Answers Option 1 Marginal product diminishes and average product increases Option 2 Average product diminishes and average product increases Option 3 Both marginal product and average product diminish Option 4 Both marginal product and average product increase Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 3) Under the law of variable proportion stage is known as the stage of increasing returns because_____ Answers Option 1 Marginal product of the variable factor increases through out this stage Option 2 Marginal product increase at the increasing rate through out this stage Option 3 Average product of the variable factor increases through out this stage Option 4 Total product increase at the increasing rate throughout this stage Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 4) Point of inflexion is the point at which_____ Answers Option 1 Marginal product increase Option 2 Marginal product decrease Option 3 Marginal product is at its maximum Option 4 Marginal product becomes zero Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 5) Which of tge following is correct regarding long run cost? It is least cost of producing each level of out put LAC curve is envelope of SAC curves. LAC is U shaped Answers Option 1 1 and 2 only Option 2 2 and 3 only Option 3 1 and 3 only Option 4 1, 2 and 3 Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 6) The efforts and sacrifices made by the owners of factors of prodution used in the prodution of commodity is known as_____ Answers Option 1 Opportunity cost Option 2 Implicit cost Option 3 Explicit cost Option 4 Real cost Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 7) Opportunity cost refers to_____ Answers Option 1 Money expenses incurred on factors Option 2 The imputed value of the input owned by the firms Option 3 The next best alternative Option 4 None of these Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 8) Economics cost consists of_____ Implicit cost Explicit cost Normal profit Answers Option 1 1 and 2 only Option 2 2 and 3 only Option 3 1 and 3 only Option 4 1, 2 and 3 Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 9) An increase in supply of a commodity causes ____ Answers Option 1 An increase in equilibrium price and increase in equilibrium quantity Option 2 A decrease in equilibrium price and increase in equilibrium quantity Option 3 A increase equilibrium price and decrease in equilibrium quantity Option 4 A decrease equilibrium price and decrease in equilibrium quantity Feedback Wrong choice Correct option Incorrect selection Wrong choice Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 10) Condition for the producer’s equilibrium is____ Isoquant should be tangent to the is -cost line. Isoquant should be tangent to the iso-cost line. Answers Option 1 1 and 2 only Option 2 2 and 3 only Option 3 1 ,2 and 3 only Option 4 1, 2 ,3 and 4 only Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback)
Multi-choice 4 Question 1) In CES production function elasticity of factor substitution is______ Answers Option 1 Unity Option 2 Zero Option 3 Infinite Option 4 Can take any positive constant value Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 2) In the second stage of the law of variable prodution_____ Answers Option 1 Marginal product diminishes and average product increases Option 2 Average product diminishes and average product increases Option 3 Both marginal product and average product diminish Option 4 Both marginal product and average product increase Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 3) Under the law of variable proportion stage is known as the stage of increasing returns because_____ Answers Option 1 Marginal product of the variable factor increases through out this stage Option 2 Marginal product increase at the increasing rate through out this stage Option 3 Average product of the variable factor increases through out this stage Option 4 Total product increase at the increasing rate throughout this stage Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 4) Point of inflexion is the point at which_____ Answers Option 1 Marginal product increase Option 2 Marginal product decrease Option 3 Marginal product is at its maximum Option 4 Marginal product becomes zero Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 5) Which of tge following is correct regarding long run cost? It is least cost of producing each level of out put LAC curve is envelope of SAC curves. LAC is U shaped Answers Option 1 1 and 2 only Option 2 2 and 3 only Option 3 1 and 3 only Option 4 1, 2 and 3 Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 6) The efforts and sacrifices made by the owners of factors of prodution used in the prodution of commodity is known as_____ Answers Option 1 Opportunity cost Option 2 Implicit cost Option 3 Explicit cost Option 4 Real cost Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 7) Opportunity cost refers to_____ Answers Option 1 Money expenses incurred on factors Option 2 The imputed value of the input owned by the firms Option 3 The next best alternative Option 4 None of these Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 8) Economics cost consists of_____ Implicit cost Explicit cost Normal profit Answers Option 1 1 and 2 only Option 2 2 and 3 only Option 3 1 and 3 only Option 4 1, 2 and 3 Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 9) An increase in supply of a commodity causes ____ Answers Option 1 An increase in equilibrium price and increase in equilibrium quantity Option 2 A decrease in equilibrium price and increase in equilibrium quantity Option 3 A increase equilibrium price and decrease in equilibrium quantity Option 4 A decrease equilibrium price and decrease in equilibrium quantity Feedback Wrong choice Correct option Incorrect selection Wrong choice Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 10) Condition for the producer’s equilibrium is____ Isoquant should be tangent to the is -cost line. Isoquant should be tangent to the iso-cost line. Answers Option 1 1 and 2 only Option 2 2 and 3 only Option 3 1 ,2 and 3 only Option 4 1, 2 ,3 and 4 only Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback)
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