Question # 1 of 10 ( Start time: 12:22:29 AM ) Total Marks: 1
————— is the rate at which a firm can substitute capital for labor and hold output constant.
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Diminishing marginal returns————— is the rate at which a firm can substitute capital for labor and hold output constant.
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Marginal rate of substitution
Marginal rate of production
Marginal rate of technical substitution
Question # 2 of 10 ( Start time: 12:23:48 AM ) Total Marks: 1
An increase in the total output of a country over time is called:
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InflationAn increase in the total output of a country over time is called:
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Economic growth
Economic development
Unemployment
farm can produce 100 kilogram of apples per year with 2 workers and 400 kilogram of apples per year with 3 workers. The marginal product of the third worker is:
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100 kilogram.Select correct option:
300 kilogram.
400 kilogram.
500 kilogram.
Question # 4 of 10 ( Start time: 12:26:12 AM ) Total Marks: 1
According to the Real Business Cycles (RBC) School, fluctuations in output occur because of:
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Change in price level.According to the Real Business Cycles (RBC) School, fluctuations in output occur because of:
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Change in technology.
Change in aggregate demand.
Unanticipated change in demand management policies.
Question # 5 of 10 ( Start time: 12:27:40 AM ) Total Marks: 1
Suppose the consumption function is C = 200 + 0.6 Yd. What is marginal propensity to consume?
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6Suppose the consumption function is C = 200 + 0.6 Yd. What is marginal propensity to consume?
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60
0.6
600
Question # 6 of 10 ( Start time: 12:29:08 AM ) Total Marks: 1
A risk neutral person always has ___________ marginal utility of income.
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DiminishingA risk neutral person always has ___________ marginal utility of income.
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Increasing
Undefined
Constant
Question # 7 of 10 ( Start time: 12:30:38 AM ) Total Marks: 1
ABC Company is running a business of car manufacturing and finds sharp increase in prices of spare parts which in turn increases cost of manufacturing cars. This increase in cost of production will:
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Shift demand curve for cars to the right.ABC Company is running a business of car manufacturing and finds sharp increase in prices of spare parts which in turn increases cost of manufacturing cars. This increase in cost of production will:
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Shift demand curve for cars to the left.
Shift supply curve for cars to the left.
Bring no change in demand or supply curves for cars.
Question # 8 of 10 ( Start time: 12:32:05 AM ) Total Marks: 1
The saving function is:
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The level of planned saving for every change in disposable income.The saving function is:
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The level of planned saving at different levels of disposable income.
The ratio of total saving to total disposable income.
The ratio of a change in planned saving to a change in disposable income.
Question # 9 of 10 ( Start time: 12:33:31 AM ) Total Marks: 1
Suppose supply of agricultural products is price inelastic and government decides to increase taxes on agricultural products. More of the tax burden in this case would fall on:
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Producers.Suppose supply of agricultural products is price inelastic and government decides to increase taxes on agricultural products. More of the tax burden in this case would fall on:
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Consumers.
Government.
Both producers and consumers.
Question # 10 of 10 ( Start time: 12:35:00 AM ) Total Marks: 1
If marginal product is below average product:
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The total product will fallIf marginal product is below average product:
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The average product will fall
Average variable costs will fall
Total revenue will fall
