Economics - Practice Test | ExamPrepSheets

[#806] The producer is in equilibrium at a point where the cost line is

(A) Above the isoquant

(B) Below the isoquant

(C) Cutting the isoquant

(D) Tangent to isoquant

Correct Answer

(D) Tangent to isoquant

Explanation

Solution: The producer is in equilibrium at a point where the cost line is Tangent to isoquant.

[#807] The production function X = AL 3/5

(A) greater than 1

(B) 1

(C) less than 1

(D) zero

Correct Answer

(A) greater than 1

[#808] 'Ceteris paribus' clause in the law of Demand does not mean

(A) the price of the commodity does not change

(B) the price of its substitutes does not change

(C) the income of the consumer does not change

(D) the price of complementary goods does not change

Correct Answer

(A) the price of the commodity does not change

[#809] If a demand curve shifts to the right, it means-

(A) price of the commodity has gone down

(B) demand function has improved

(C) the supply function has improved

(D) the real income of the consumer has gone down

Correct Answer

(B) demand function has improved

[#810] In which of the following form of the market the producer is isolated and selling costs is incurred

(A) Perfect competition

(B) Monopoly

(C) Monopolistic competition

(D) None of these

Correct Answer

(C) Monopolistic competition

Economics - Study Mode

[#806] The producer is in equilibrium at a point where the cost line is

Correct Answer

Explanation

[#807] The production function X = AL 3/5

Correct Answer

[#808] 'Ceteris paribus' clause in the law of Demand does not mean

Correct Answer

[#809] If a demand curve shifts to the right, it means-

Correct Answer

[#810] In which of the following form of the market the producer is isolated and selling costs is incurred

Correct Answer