Economics - Study Mode
[#171] TC curve
Correct Answer
(A) Rises continously
(F) Does not start from origin
Explanation
Solution: TC curve rises continously. Total cost (TC) is the total economic cost of production and is made up of variable cost, which varies according to the quantity of a good produced and includes inputs such as labour and raw materials, plus fixed cost, which is independent of the quantity of a good produced and includes inputs that cannot be varied in the short term: fixed costs such as buildings and machinery, including sunk costs if any. Since cost is measured per unit of time, it is a flow variable.
[#172] In which year, was the first volume of Das Capital by Karl Marx published?
Correct Answer
(C) 1867
Explanation
Solution: The first of three volumes of Das Kapital was published on 14 September 1867, dedicated to Wilhelm Wolff and was the sole volume published in Marx's lifetime.
[#173] According to Keynes, interest is a payment for
Correct Answer
(C) Liquidity preference
(G) Liquidity preference
(K) Use of money
Explanation
Solution: According to Keynes, interest is a payment for Liquidity preference. The Liquidity Preference Theory says that the demand for money is not to borrow money but the desire to remain liquid. In other words, the interest rate is the 'price' for money.
[#174] When marginal is negative, it must be true that
Correct Answer
(D) The total is decreasing
Explanation
Solution: When marginal is negative, it must be true that the total is decreasing. Marginal utility may decrease into negative utility, as it may become entirely unfavorable to consume another unit of any product.
[#175] All the following curves are U-shaped except
Correct Answer
(B) AFC
Explanation
Solution: All the following curves are U-shaped except AFC. The AFC curve is a rectangular hyperbola in the sense that all rectangles formed by AFC are of equal sizes. The AFC curve is asymptotic to both the axes. This means that it touches neither the horizontal axis nor the vertical axis.