Classical

Managerial Economics - Managerial Economics Objective Type Questions

46:  

Goods X and Y are perfect substitutes. A consumer's indifference curve for these commodities is represented by a

A.

Upward sloping straight line

B.

Upward sloping curve which is convex from below

C.

Downward sloping straight line

D.

Downward sloping curve which is convex to origin

 
 

Option: C

Explanation :


47:  

The Law of variable proportions comes into being when

A.

All factors are variable

B.

There is a fixed factor and a variable factor

C.

There are only two variable factors

D.

Variable factors yield less

 
 

Option: B

Explanation :


48:  

Match the following :

(A) Cardinal approach                        1. Marginal utility

(B) Ordinal approach                          2. Alfred Marshall

(C) Hicks-Allen approach                   3. J.R. Hicks

(D) Consumer's surplus                      4. Indifference curve

                                                           5. Revealed preference theory

A.

(A) (B) (C) (D)

4    3    1    2

B.

(A) (B) (C) (D)

1    2    3    4

C.

(A) (B) (C) (D)

3    4    2    1

D.

(A) (B) (C) (D)

2    4    1    3

 
 

Option: B

Explanation :


49:  

Average fixed cost

A.

Remains the same whatever the level of output

B.

Increases as output increases

C.

Diminishes as output increases

D.

All the three are possible

 
 

Option: C

Explanation :


50:  

In case the two commodities are good substitutes, cross-elasticity will be

A.

Positive

B.

Negative

C.

Unitary

D.

Infinite

 
 

Option: A

Explanation :




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