Economics - Study Mode

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[#1256] Consider the following statements. 1. TV increases so long as MU is positive. 2. TU = $$sum $$AU 3. When MU is negative, TV starts increasing. Which of the statement(s) given above is/are correct?

(A) Only 1

(B) Both 1 and 3

(C) Both 2 and 3

(D) None of these

Correct Answer

(A) Only 1

[#1257] Long-run cost curves are called:

(A) operating curves

(B) fixed curves

(C) variable curves

(D) planning curves

Correct Answer

(D) planning curves

[#1258] The Learner index measures

(A) market power

(B) price

(C) price marginal cost

(D) None of the above

Correct Answer

(A) market power

[#1259] If for a particular combination of labour and capital, the marginal productivity of capital is 4 units of output and the marginal rate of technical substitution is 2 units of capital per unit of labour, then the marginal productivity of labour will be

(A) 1/2

(B) 4

(C) 6

(D) 8

Correct Answer

(D) 8

[#1260] Starting from a monopoly equilibrium without any policy intervention, market efficiency can be improved by imposing a

(A) per-unit production tax

(B) per-unit sales tax

(C) profit tax

(D) price ceiling below the existing equilibrium price

Correct Answer

(A) per-unit production tax