Answer all these mcq questions

The arc-elasticity of demand method relies on:

a Extrapolation b Interpolation c Infinitesimally small changes in prices and quantities d Differentiability of the demand function.

Giffen's Paradox is an:

a Exception to the law of demand. b An observable phenomenon only in agriculture c An empirical result derived from consumption patterns observed in China. d An aberration in the theory of value.

The slope of the Production Possibilities Frontier is also known as the:

a Marginal Rate of Transformation (MRT) b Marginal Rate of Substitution (MRS) c Marginal rate of Technical Substitution (MRTS) d Marginal Rate of Investment

Quantity discounts may lead to a:

a Continuous and differentiable demand function. b Logarithmic demand function. c Biquadratic demand function. d Kinked demand function.

the classical theory of utility , scholars postulated:

a Utility is directly measurable b That indifference curves are necessary to systematize a consumer's preference ordering. c Utility can only be measured indirectly. d Utilities are always non-additive.

The increase in the total variable cost as a result of an incremental unit of output is :

a Marginal Labor

b Marginal Cost

c Marginal Product

d Marginal Fixed Cost

The Marshallian utility function is:

a Additive b General c Exponential d Logarithmic.

The Marshallian utility function is:

a Additive b General c Exponential d Logarithmic.

I keep $25,000 at home instead of depositing it in the bank. The market rate of interest on fixed deposits is an:

a Implicit cost of keeping the money at home b Explicit cost c Neither an implicit cost nor an explicit cost d Cannot be determined

A Hicksian demand function does NOT:

a Assume that one has to be able to purchase the same consumption bundle after a change in real income. b Assume that the demand function is a compensated one. c Assume that the consumer remains on the same level of utility as before d Assume that preferences are transitive.

The supply function of a monopolist :

a Is upward sloping. b Is downward sloping c Does not exist. d Is a horizontal curve.

The axiom of Diminshing Marginal Returns is synonymous with the neoclassical law of:

a Increasing Marginal Productivity b Diminishing Marginal Productivity c Constant Marginal Productivity d Diminishing Marginal Product of Capital

_______________________ represents total variable cost divided by total output.

a Average Variable Cost

b Marginal Variable Cost

c Average Fixed Cost

d Marginal Cost