2019 economy with linear

1 Which
regarding
of the
'following statements are true
6 In an
Douglas
production function the
total output are
and labour in capital stock
The and
homreossgpheearnceteisve,
si.
1. It is long Cobb-Douglas production function?
2. It is short
period
period
production function
and 60%.respectively
growing,
the rate of
at 8% and
growth of output is lrecorded
aab0r
3. 1t is based on production function annum, then the
rate of growth
4. Output increasing returns to Scale productivity will be
Constant elasticities with respect to factors are
(a)2%
(b) 10%
(d) 11%
Solect the correct answer from the (c) 4%
code given below
and3
7 If for the
constant elasticity
of
the sutsut s
(b) 1and 4
(c) 1and 2
(d) 3and 4 production function, the value of
2018 parameter is -1,the elasticity of s
2 Consider the
average fixed cost following statements about the
(a) indeterminate
(c) zero
(d) unitysubstitutin
(b) infinite

of a firm. 8 Given below are

two statements, one
Assertion (A) and the other labelled as late
1. Its slope is
always negative
Read the statements and choose the Pez
2. Its slope is al
3. Its slope is ways greater than one corret
always equal to one
4. Elasticity with using the codes given below.
respect to output is equal to one Assertion (A) In the PN Rosenstein
Select the correct answer from the
(a) l and 4 code given below
(b) Only 3
the positive role of indivisibilities in
pros
Rodan
(c) 2 and 3 has been analysed.
(d) Only 1
3 Reason (R) Removal of indivisibilities i
Technological
(a) Prevalence ofdualism means constant returns to scale in production.
different
advanced and traditionalproduction functions in the
sectors in underdeveloped
Codes
COuntries (a) (A) is true, but (R)is false
(b) Prevalence of different (b) (A) is false, but (R) is true
production function in the (c) Both (A) and (R) are true, and (R) is the
industrialsector in underdeveloped countries
(c) Prevalence of different explanation of (A)
technologies in agricultural
sector in underdeveloped countries (d) Both (A) and (R) are true, but (R) is
not the
(d) Prevalence of different production explanation of (A)
functions in
domestic and export sectors of underdeveloped 9 There is incomplete
4
countries
when country faces specialisation in prot
Consider the following statements about the law (a) constant
of variable proportion. opportunity costs
(b) decreasing
1. Input ratio remains unchanged (c) increasing opportunity costs
2. Ultimately, the marginal and average product of (d) opportunity costs
variabie input becomes negative. indeterminate opportunity costs
10 If the
3. Effect of technological change is visible on output producer pays the price for each
inputs, that is used is equal to its va
Select the correcl answer from the code given below
(a) Only 2 is correct marginal product, then which one ofthefoll
does he earn?
(b) None of the above statements is correct (a) Zero
(c) l and 2 are correct supernormal profit
(b) Monopoly profit
(d) 2 and 3are correct {c) Positive
5 An economic region of production consist of (d) Negativesupernormal profit
(a) the híghest pointsof allisoquants 11 Total supernormal profitof produce
Cost
(b) the negatively sloped portions of all isoquants C=10 + function
cOsttof 5Q+ 2Q.If price is 15, what
a
is mat
(c) the positively sloped portions of all isoquants the
(d) the middle of all isoquants (a) 10
(c) 15
producer
in equilibrium?
(b) 5
(d) 4
 12 For the function Q= A
following is correct? K°-L', which of the 20 Given the following total cost and
a) The degree of functions of a firm, find the price at whichdemand
b) Elasticity of homogeneityis profits
is 1
would be maximised
substitution
ic) Output elasticity with equal to a +B
respect to C-5Q +20Q + 10
(d) Marginal produet of a factor = capital is a P= 100 - 3Q
factor Average product of the
13 Consider the following Where,C=Total cost
production function forms
with a technical progress Q-Output
term A(t). P=Price
1.Q= flK,, A()- L,] (a) 95 (b) 85 (d5
2. = f[A(t)- K,, L,)
3.Q= A()f(K,,L,) 21 In the adjoining diagrem, which of the line
Of the above which production represent law of returns?
function, with
labour augmenting technology will keep the
distribution of output between labour and capital
as constant? Capital
Select the correct answer from the code given belou B
(a) Only l (b) l and 2
(c) Only3 (d) l and 3
14 When the marginal cost is equal to average cost, X
the slope of the average cost is Labour
(a)positive (b) negative (a) 0A (b) BC (c) DE (dy Both (b) and (c)
(c) zerU (d) infinite
22 The production function Q=150L"K0,exhibits
o17 the returns to scale as
(a) constant (b) increasing
15 Cobb-Douglas production function Q= Al' K'-e (c) deereasing (d) fluctuating
(a> 0) is not characterised by
(a) constant returns to scale 2016
(b) unit elasticity to scale 23 For the Harrod's model of growth, which among
(c)variable elasticity of substitution the following production functions best matches
(d) linear homogeneity with the assumptions of the model?
16 An entrepreneur's short-run total cost function is (a) Leontief production function
C= q' - 10g + 17g + 66. If p=5, the output at (b) Homogeneous production function
which profit is maximised by this entrepreneur is (c) CES produetion function
(b) 6 (d) Well-behaved production function
(a) 7
(c) 5 (d) 2/3 24 In following Cobb-Douglas production
the
must function, Q= ALK,ifa +B>1, then the share of
7In the short-run, which of the following costs labour would be
continuously decrease as output increases? (c)
(d) ß
(b) Total fixed cost (a)x (b)
(a)Total variable cost
(c) Average variable cost (d) Average fixed cost
in the
statement is correct? 25 L-shaped average cost curve is witnessed
8 Which amongst the following MC are at the same large firms because
and
A\VC
(a) The minimum point of (a) only the law of increasing return operates
level of output operates
output than the minimum (b) the law of constant returns to scale
{b) Minimum of AVC is at lesser (c) only the law of constant return operates returns is
of MC decreaNIng
Minimum of AVCis at larger output than
the minimum (d) the operation of law of
(c) continuously postponed
of MC function as
(d) Any of the above is possible
depending upon operating 26 Given the CES production
substitution
of the law of returns
y=la,x t a,r the elasticity of
9 The production function in input-output analysis between factor is
propounded by WW Leontiefbetween has implied the value (b) p
inputs as ()1
of elasticity of substitution(b) zero (d)
1-p
(a)one
(d) infinity
(c) constant
 Constant returns to scale
27 A firm will be of 2. conditions
Inada
(a) optimum size when
marginal cost is at a minimum 3. Satisfies
Select the correct answer using the codes
(b) average cost is at (b) 1and3
a
(C) margìnal cost is minimum
equal to (a) 1 and 2
(d) All of the
marginal
maximises its output revenue
(d) the firm (c) 2 and 3
the following
28 Which production

Harrod-neutral
progress?
and
function
Hicks-neutral
admíts both
technical
35 Which
among
exhibit both Hicks and
will
progress?
productHarroidt , %
(a) Cobb-Douglas production functions
(b) CES (a) Leontief production functions
(c) VES b)Cobb-Dougias
(d) None of these production functions
2015 (c) ACMS above
(d) None of the
29 Assertion (A) The production function
examines productionendogenous
function growth theory
that shows
36 In CES,
increasing returns. a)X;°] P
Q= A<a X,P + (1-
Reason (R) There is specialisation and where is output and
X, and X,
investnent in knowledge capital and mark the correct option fare la,
Codes capital. given below.
(a) Both (A) and (R) are
true and (R) is the correct List !!
explanation of (A) List I
(b) Both (A) and R) are true 1
explanation of (A)
and (R) is not the correct A. Efficiency Parameter
(c) (A) is true, but (R) is false B. Distribution Parameter 2. p
(d) (A) is false, but (R) is true C. Substitution Parameter 3. a
30 Given the production function Q =
2. KY .L", D. Returns to Scale Parameter 4. A
find the output level when 8 units of
units of labour are used. capital and 27
Codes
(a) 36 (b) 54 A B D A BCI
(c) 18 (d) 24 (a) 1 2 4 (b) 1
31 Exponents of the Cobb-Douglas production (c) 4 2 1 (d) 2 3
represent
2014
(a) output elasticity of factors
(b) share of factor income in total income 37 Even as fixed average cost continues to
(c) Allof the above average variable cost begins to rise becau
(d) None of the above (a)returns to factor start diminishing
32 Concept of scale economies applies in (b) returns to factors start rising
(a) long-run with constant technical coefficients (c) input prices start rising
(d) producers budget starts
(b) long-run with variable technology shrinking
(c) short-run with constant technology 38 Consider the following statements
(d) short-run with variable technical coefficient 1. The lowest point on the long-run aver
33 Consider an economy with a Cobb-Douglas type of Curve is known as minimum efficient scalt
production function with two inputs capital and 2. It is the output which
labour. The share of capital and labour in total long-run average s
stops falling.
output are, respectively and The rates of Which of the
(a) Only1 statement(s) given
4 4 above is /are
growth of capital and labour are, respectively 8% (b) Only 2
and 4% per annum. (c) Both l and 2
Neutral technical progress takes place at the rate (d) Neither l nor 2
of 3% per annum. What will be the rate of growth
39 Law of
of output per annum in this economy? when diminishing returns beginsto(
(a) 5% (b) 7% (c) 9% (d) 8%
(a) total
34 Neo-classical production function has which of the product begins to rise
(b)total product
following characteristics? (c) marginal begins to fall
1. Positive and diminishing marginal productivities (d) marginal product begins to rise
of the factors. product begins to fal
40 In the production funetion Q= AL"K". Match the Codes
following. B A C D
List (a) I 4 2 (b) 2
List Ill
(c) 1 2 3 4 (d) 1 4 3
A a+ b 1 1
42 A producer is said to he operating with excess
B. Elasticity of Substitution capacity
C. Labour Elasticity of Output 3 Constant returns to scale (n) when he produces an output greater than that given
by the minimum average total cost
D. Capital Elastcity of Output 4 One
(b) when he producesan output greater than at given by
Codes the maximum average total cOst
A B D A B C D (c) when he produces an output equal to that give by the
(a) 1 2 3 4 (b) 1 2 4 minimum average total cost
(c) 3 4 1 (d) 2 4 1 (d) when he produces an output smaller than that given
by the minimumn average total cost
41 Given that the CES production function as a aß
43 The average cost function is given as
Match the following. 1
AC = x² - 10x +9. The level of output at which
List I List Il
3

A. A
average cost is equal to marginal cost is
1 Factor lntensity (a) 18
B 2 Elasticity of Substitution (b) 12
(c) 15
C. B Factor Homogeneity (d) 21
D. Y 4 Efficiency Parameter