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Mathematical
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126. If your income doubles and the prices of the goods you buy double,
then your demand for these goods will likely ________

A. increase

B. not change

C. decrease

D. shift

Answer: B

127. Football socks are found to have a cross-elasticity of demand of ?2

with respect to product Y. Which of the following products is most likely to
be product Y:

A. Cricket boots

B. Tennis shoes

C. Tennis socks

D. Football boots

Answer: D

128. The process of finding relative maximum or minimum of a function is

known as :

A. optimization

B. minimisation

C. maximisation

D. any of these

Answer: A

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129. A ____ is a point at which a function is at a relative maximum or
minimum:
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A. plateau
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B. relative extremum

C. inflection

D. critical value

Answer: B

130. The value of Lagrange multiplier ? gives the approximate change in

the objective function caused by a small change in the:

A. constant of the constraint

B. objective function

C. variables in the constraint

D. any of these

Answer: A

131. The first derivative measures the rate of change or ____ of a function:

A. intercept

B. convexity

C. slope

D. concavity

Answer: C

132. For a cost function TC = 3Q2 + 7Q +12, MC is :

A. 6Q

B. 6Q + 7

C. 3Q + 7

D. undefined

Answer: B

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133. MR is : c
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A. the second order derivative of TR

B. the first order derivative of TC

C. the first order derivative of TR

D. the first order derivative of TR

Answer: D

134. In optimisation, with the first order derivative equal to ___ and the
second order derivative ___ the function is at a maximum.

A. 0, 0

B. 0, < 0

C. 0, > 0

D. > 0, 0

Answer: B

135. When we optimise a function, with the first order derivative equal to
___ and the second order derivative ___ the function is at a relative
minimum.

A. 0, 0

B. 0, < 0

C. 0, > 0

D. > 0, 0

Answer: C

136. In Cobb Douglas Production of functions, the elasticity of

Substitutions is :

A. greater than one

B. equal to one

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C. less than one
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D. None of these c
Answer: B M
137. Feasible solution of LPP is:

A. Values of decision variables satisfy the constraints

B. Values of decision variables satisfy the objective functions

C. Values of variable satisfy the objective functions

D. the value of the objective function

Answer: B

138. In linear programming, the dual of maximization is equal to:

A. minimization

B. Shadow Pricing

C. Maximisation

D. None of these

Answer: A

139. Linear Programming deals with:

A. Constraints

B. Inequalities

C. Objective functions

D. All the above

Answer: D

140. A production function is said to be _____, if, when each input factor is
multiplied by a positive real constant k, the constant can be completely
factored out:

A. homogenou

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B. nonhomogenous
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C. additive c
D. heterogonous M
Answer: A

141. ____ functions are a special class of homogeneous function in which

the marginal rate of Technicalsubstitution is constant along the function.

A. Hypothetic

B. Homothetic

C. Objective

D. Value

Answer: B

142. In linear programming, the number of technical constraints will be

___the number of the factors of production:

A. equal to

B. smaller than

C. greater than

D. the same as

Answer: D

143. In linear programming, _____are expressed as inequalities, rather than

equalities.

A. the technical constraints

B. objective functions

C. dual

D. primal

Answer: A

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144. In linear programming, _____ expresses the necessity that the levels
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of production of the commodity cannot be negative, that is, it should be
either positive or zero.
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A. the technical constraints

B. objective functions

C. non negativity constrains

D. primal

Answer: C

145. In input-output analysis, ___ represents in monetary terms or

quantitative terms all the transactions of the economic system.

A. the transaction matrix

B. objective functions

C. non negativity constrains

D. the

Answer: A

146. In input-output analysis,____ shows the number of units of any

industry’s output needed to produce one unit of another industry’s output.

A. the transaction matrix

B. The technical coefficients

C. non negativity constrains

D. the

Answer: B

147. In input-output analysis,____ is obtained by dividing the input of the

desired sector by the total output of the same sector.

A. the transaction matrix

B. a technology coefficient

C. non negativity constrains

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D. the
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Answer: B c
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148. In input-output analysis,when the technical coefficients are put in the
form of a matrix, we get the______

A. the transaction matrix

B. a technology coefficient

C. non negativity constrains

D. the

Answer: D

149. In input-output analysis,if the exogenous sectors of the open input

output model is absorbed in to the system as just another sector _____

A. the transaction matrix

B. a technology coefficient

C. Leontief closed model

D. the

Answer: C

150. In an input-output matrix, the element ____shows the input industry II

takes from industry I.

A. a12

B. a21

C. a11

D. a22

Answer: A

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