Classical

Managerial Economics - Managerial Economics Multiple Choice Questions

11:  

An Iso-cost line represents

A.

Combinations of two inputs which yield varying amounts of output

B.

Combinations of two inputs which cost the same amount to a firm

C.

Combinations of two inputs which yield the same amount of output

D.

Combinations of two inputs which cost different amounts of outlay to a firm

 
 

Option: B

Explanation :


12:  

The law of increasing returns is only applicable to agriculture; according to

A.

Classical school

B.

J. M. Keynes

C.

Modern school

D.

Neo-classical school

 
 

Option: A

Explanation :


13:  

Marginal cost curve

A.

Has the shape of the inverted U

B.

Has the shape of the alphabet U

C.

Has the shape a rectangular hyperbola

D.

All of these

 
 

Option: B

Explanation :


14:  

The movement along an indifference curve reflecting the substitution of cheaper products for more expensive ones is

A.

supply effect.

B.

utility effect.

C.

a substitution effect.

D.

an income effect.

 
 

Option: C

Explanation :


15:  

A product that enjoys rapidly growing demand over time is likely to be

A.

an inferior good.

B.

a noncyclical normal good.

C.

a cyclical normal good.

D.

neither a normal nor an inferior good.

 
 

Option: C

Explanation :




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