Q.  A significant property of the Cobb - Douglas production function is that the elasticity of substitution between inputs is: A.           Equal to unity               ...

Q. In the short term, when the output of a firm increases, its average fixed cost: A.           Increase            B.            ...

Q. Total costs in the short-term are classified into fixed costs and varibale costs. Which one of the following is a variable cost? A.           Cost of raw materials              ...

Q.        Which of the following cost curves is never Un-shaped? A.           Average cost curve    B.            Marginal cost curve ...

Q.       Which cost increases continuously with the increase in production? A.           Average cost  B.            Marginal cost ...

Q. The supply of a commodity refers to: A.           Actual production of the commodity           B.            Total existing stock of ...

Q.  A vertical supply curve parallel to the price axis implies that the elasticity of supply is: A.           Zero     B.            Indinity ...

Q.  An ISO-product curve slopes: A.           Downward to the left              B.            Downward to the right ...

Q.       Production is a function of: A.           Profits B.            Costs C.            Inputs ...

Q. The Revealed Preference Theory deduces the inverse price-quantity relationship from: A.           Assumption of indifference B.            Postulate of utility maximization ...