Economics - Study Mode
[#1051] With reference to nominal wages, which of the following statement is/are correct? 1. It is received in money form 2. It is not received in money form Select the correct answer
Correct Answer
(D) Neither 1 nor 2
[#1052] In the linearly homogeneous Cobb-Douglas production function with two inputs, the elasticity of substitution between the inputs is
Correct Answer
(C) one
[#1053] A firm's average fixed cost is Rs.20 at 6 units of output. What will it be at 4 units of output?
Correct Answer
(B) Rs.30
Explanation
Solution: Average fixed cost per unit is Rs. 20 when 6 units of product produced.
Total fixed cost = 6 X 20 = Rs. 120.
Therefore fixed cost per unit when production is 4 units = 120/4 = Rs.30
[#1054] If the price of good A increases relative to the price of substitutes B and C, the demand for
Correct Answer
(C) Both B and C will increase
Explanation
Solution: If the price of good A increases relative to the price of substitutes B and C, the demand for Both B and C will increase.
[#1055] Lesser production of ____ would lead to lesser production in future.
Correct Answer
(C) Capital goods
Explanation
Solution: Lesser production of Capital goods would lead to lesser production in future. Production of both capital and consumer goods is essential for the economy. Capital goods (like plant and machinery) are needed for further production and future growth. Consumer goods are needed for present consumption.