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Download Calicut University Latest 2020 B.Sc Mathematics MCQ.MEC1 C01 MATHEMATICAL ECONOMICS Important Questions

Download UOC (University of Calicut) B.Sc Mathematics MCQ.MEC1 C01 MATHEMATICAL ECONOMICS (Important Questions) Question Bank

This post was last modified on 26 December 2019

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OU MBA Important Study Materials (Lecture Notes) || Osmania University


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UNIVERSITY OF CALICUT

School of Distance Education

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MEC1 C01:MATHEMATICAL ECONOMICS

(COMPLEMENTARY FOR BSC MATHEMATICS)

2019 Admission Onwards

MULTIPLE CHOICE QUESTIONS

1: f(x) = 3x3 - 4x2 + 10 implies

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  1. f(1) = 10
  2. f'(x) = 9x2 - 8x + 10
  3. f"(x) = 18x – 8
  4. f'(2) = 10

2: Which of the following are NOT true?

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  1. f(x) = axn implies f '(x) = anxn-1
  2. f(x) = 4x5 - 3x2 implies f '(x) = 20x4 - 6x
  3. f(x) = 4x + 3/x2 implies f '(x) = 4 - 6/x3
  4. f(x) = ln(x) implies f '(x) = x-1

3: y = 100/x + 4x has

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  1. a maximum point where x = 5
  2. a minimum point where x = 5
  3. a maximum point where x = 0
  4. a minimum point where x = -5

4: Which of the following statements are (in general) true?

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  1. Marginal cost (MC) is minimised where MC = Average Variable Cost (AVC)
  2. Total Cost (ATC) is minimised where MC = ATC
  3. Average Variable Cost (AVC) is minimised where MC = AVC
  4. Total revenue is maximised where MC = Marginal Revenue (MR)

5: Which of the following functions have unit elasticity at P = 6?

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  1. Demand: Qd = 5/P
  2. Demand: log Qd = 100 - 3 log P
  3. Demand: Qd = 24 - 2 P
  4. Supply: Qs = 5 P

6: For the demand function Q1 = 10 - 9 P1 + P2 + 0.01Y which of the following statements are true?

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  1. dQ1/dP1 = -9 + P2 + 0.01Y
  2. dQ1/dP1 = -10
  3. dQ1/dP2 = P2
  4. dQ1/dY = 0.01

7: For the function Q = AKaLb which of the following statements are NOT true?

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  1. dQ/dL = AbKaLb-1
  2. Marginal Product of Labour (MPL) = AaKa-1Lb
  3. Marginal Product of Capital (MPK) = aQ / K
  4. Marginal rate of substitution of capital for labour (MRS) = |dK / dL|

8: Which of the following functions are NOT homogeneous of degree 1 (i.e. linear homogeneous)?

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  1. Q = 100 K1/4 L3/4
  2. Q = 20 KaL1-a
  3. Q = K2 + 2KL + L2
  4. Q = (K2 + 2KL + L2)1/2

9. The law which studies the direct relationship between price and quantity supplied of a commodity is

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  1. Law of demand
  2. Law of variable proportion
  3. Law of supply
  4. None of the above

10.When price rises, quantity supplied

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  1. expands
  2. falls
  3. increases
  4. unchanged.

11. In case of perfectly inelastic supply the supply curve will be

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  1. rising
  2. vertical
  3. horizontal
  4. falling.

12. When a percentage in price results in equal change in quantity supplied, it is called,

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  1. elastic supply
  2. perfectly inelastic
  3. elasticity of supply
  4. unitary elastic supply.

13. when supply of a commodity decreases on a fall in its price, its is called

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  1. Expansion of supply
  2. Increase in supply
  3. Contraction of supply
  4. Decrease in supply.

14. which utility approach suggests that utility can be measured and quantified?

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  1. ordinal
  2. Cardinal
  3. both a &b
  4. d)

15. diminishing marginal utility.................................. of a commodity is the additional utility derived by a consumer, by consuming one more unit of that commodity.

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  1. Marginal utility
  2. Total utility
  3. Average utility
  4. maximum utility (A)

16. At what point does total utility starts diminishing?

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  1. when marginal utility is positive
  2. when it remains constant
  3. when marginal utility is increasing
  4. when marginal utility is negative.

17. Consumer's surplus is also known as

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  1. indifference surplus
  2. elasticity of supply
  3. buyer's surplus
  4. indifference surplus.

18. Indicate which of the following is a variable cost?

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  1. Cost of raw materials.
  2. Cost of machine.
  3. Interest on capital.
  4. rent payment for buildings .

19. few sellers is the feature of

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  1. monopoly
  2. oligopoly
  3. perfect competition
  4. monopolistic competition

20. Market which have two firms are known as

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  1. Oligopoly
  2. monopoly.
  3. Duopoly
  4. perfect competition.

21. which item is not included in public utilities?

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  1. Water supply
  2. Accessories.
  3. Gas supply.
  4. Electricity.

22. supply curve of a perfectly competitive firm is

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  1. Vertical.
  2. Upward sloping.
  3. horizontal.
  4. Downward sloping.

23. In perfect competition a fiem increases profit when ......................... exceeds

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  1. TC, TR.
  2. MC, MR.
  3. AR, AC.
  4. TR, TFC.

24. the discriminating monopoly can be categorized as

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  1. Personal
  2. place
  3. use
  4. all of the above.

25. which is not a phase of business cycle?

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  1. Depression
  2. Accumulation.
  3. Recession
  4. recovery.

26. Suppose the supply for product A is perfectly elastic. If the demand for this product increases:

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  1. the equilibrium price and quantity will increase;
  2. the equilibrium price and quantity will decrease;
  3. the equilibrium quantity will increase but the price will not change;
  4. the equilibrium price will increase but the quantity will not change.

27. If the coefficient of income elasticity of demand is higher than 1 and the revenue increases, the share of expenditures for commodity X in total expenditure:

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  1. will increase;
  2. will decrease;
  3. will remain constant;
  4. can not be determined.

28. If the demand for agricultural products is inelastic:

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  1. as the prices decrease, the revenues earned by producers increase;
  2. as the prices decrease, the revenues earned by producers decrease;
  3. rising prices do not lead to differentiation in producers' incomes;
  4. the percentage decrease in prices is lower than the percentage increase in demand.

For a rational consumer who has to choose between two goods in the context of budget constraints, the price change of one of the goods, caeteris paribus, will determine:

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  1. a parallel shift of the budget line to the left;
  2. a change in the slope of the budget line;
  3. no change in the budget line;
  4. a parallel shift of budget line to the right.

29. The price of the product A was reduced from 100 to 90 lei and, as a result, the quantity demanded has increased from 70 to 75 units. The demand is:

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  1. inelastic;
  2. elastic;
  3. unit elastic;
  4. can not be determined from the given information.

30. Choose the false statement:

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  1. in general, the demand for necessity goods is less elastic than demand for luxury goods;
  2. if the price and the producers` income are directly proportional, the demand is elastic;
  3. after a long period of time since the change in the price of the good A, supply becomes more elastic;
  4. for a company whose production process involves making two goods, one main and the other secondary, if the price of the main good increases, - caeteris paribus the supply on the secondary good`s market will increase (and vice versa).

31. If the demand curve for product A moves to the right, and the price of product B decreases, it can be concluded that:

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  1. A and B are substitute goods;
  2. A and B are complementary goods;
  3. A is an inferior good, and B is a superior good:
  4. Both goods A and B are inferior.

32. Suppose the price of a good decreases by 10% and the quantity demanded for a certain period of time increases by 15%. In these conditions:

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  1. the revenues earned by producers decrease;
  2. the revenues earned by producers increase;
  3. the revenues are not influenced in any way;
  4. the company's expenses rise.

33. If a price increase of 50% results in an increase in the quantity supplyed of an economic good from 10 to 20 pieces, calculate the coefficient of price elasticity of supply.

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  1. 1/4.
  2. 1/2;
  3. 1;
  4. 2.

34. The total utility coincides with the marginal utility:

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  1. for the first unit consumed;
  2. only for the irrational consumer;
  3. at the level of the last unit consumed;
  4. at the saturation point.

35. The indifference curve means:

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  1. equal consumption of two goods;
  2. equal utility from the consumption of two combinations of goods; C. equal consumer income;
  3. equal prices of the goods consumed.

36. The points located at the intersection of the budget line with the coordinate axes mean:

  1. the consumer does not spend all his income;

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  2. the consumer spends all his income for only one good;
  3. the consumer spends absolutely nothing;
  4. these are points impossible to reach by the consumer.

37. An economic agent contracts a loan of 15.000 lei, which he will repay in three equal annual installments. What will be the total interest paid, knowing that the annual interest rate is 12% per year?

  1. 3.600 lei;

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  2. 1.800 lei;
  3. 5.400 lei;
  4. 1.500 lei.

38. An economic agent makes a bank deposit of 10.000 lei with an interest rate of 5%. What will be the amount in the bank after 2 years, if the economic agent does not make withdrawals from the account created during this period?

  1. 11.000 lei;

    2. --- Content provided by‍ FirstRanker.com ---

  2. 1.000 lei;
  3. 11.025 lei;
  4. 500 lei.

39. Which of the following statements are false?

  1. information, the entrepreneur's ability, technical progress are neo-factors of production;

    2. --- Content provided by‍ FirstRanker.com ---

  2. according to the stages of the circular flow of the company's capital, it takes three forms: money, capital goods and commodity;
  3. fixed capital depreciation is only due to physical deterioration;
  4. the factors of production are resources attracted and used in economic activity.

40. Which of the following aspects distinguish fixed capital from working capital:

  1. the number of cycles of production they participate in

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  2. the location of the production activity;
  3. the period of time after which they are replaced;
  4. the way they transmit their value to the new product.

A (a,d)

B (c,d)

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C (a,c,d)

D (b,c,d)

41. The following data is given for a company: material costs 89 mil; working capital 45 mil; indirect salaries 10 mil; fixed costs 90 mil.; variable costs 52 mil. Calculate fixed material costs and depreciation:

  1. 60 and 64;
  2. 70 and 56;

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  3. 80 and 44;

42. Fixed cost includes:

  1. expenditures for the salaries of the administrative staff;
  2. expenditure for depreciation of fixed capital;
  3. energy costs for manufacturing;

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  4. expenditure for general lighting.

D. 89 and 45.

D. (b,c,d)

D (a,d)

A. (a,b,c) B. (a,b,d)

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43. When production volume is zero:

  1. the fixed cost is 0;
  2. the variable cost is 0;
  3. the fixed cost is higher than the variable cost;
  4. the variable cost is higher than the fixed cost.

    5. --- Content provided by​ FirstRanker.com ---

A (a,b,c)

B (b,c,d)

C. (a,c,d)

D. (b,c)

44. Calculate the average fixed cost (AFC), for a level of production Q = 20, knowing that the total cost function is: TC = 200 + 3Q + 2Q2.

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  1. 1060;
  2. 200;
  3. 20;
  4. 10.

45. Which of the following statements is false?

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  1. perfect competition involves many sellers of standardized products;
  2. monopolistic competition involves many sellers of homogeneous products;
  3. the oligopoly involves several producers of standardized or differentiated products;
  4. monopoly involves a single product for which there are no close substitutes.

46. On the market with perfect competition:

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  1. the firm is a "price-taker," meaning, it takes over the market price;
  2. the firm is a "price-maker", meaning, it determines the market price;
  3. the companies' products are differentiated;
  4. input barriers are minimal, and exit barriers are maximal.

47. Which of the following conditions indicate that a good is produced under perfect competition:

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  1. producers` profits are high;
  2. producers` profits are small;
  3. total supply is inelastic;
  4. individual demand is perfectly elastic.

48. The profit maximization condition for a firm in a market with monopolistic competition is the following (MR is marginal revenue, MC is marginal cost, P is price, ATC is average total cost, TR is total revenue):

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  1. MR=MC;
  2. MC = P;
  3. MR = ATC;
  4. TR to be maximum.

49. Which of the following statements about monopoly is true:

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  1. there are several companies producing a specific product;
  2. there is only one producing company, but the product has close substitutes;
  3. there are no competitors on the relevant market;
  4. input barriers are low.

50.There are differences between monopolistic and perfect competition regarding:

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  1. market entry;
  2. the number of sellers and buyers;
  3. the market power of competitors;
  4. homogeneity of products.

51. Which of the following can be considered as the basic features of public goods:

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  1. are state-owned;
  2. are characterized by non-excludability and non-rivalry;
  3. are characterized by excludability and rivalry;
  4. may be positive or negative.

52. Which of the following solutions are not part of the ways of internalizing externalities:

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  1. the imposition of fines on the producer of negative externalities;
  2. the introduction of taxes and duties that bring private costs to the level of social costs;
  3. closure of companies producing positive or negative externalities;
  4. the association of the negative externality manufacturer with the receptor of such an effect.

53. Normally, the natural economy is characterized by:

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  1. price formation through complex mechanisms;
  2. perfect competition;
  3. the preponderance of product exchange;
  4. the satisfaction of the individual and community needs of its own production.

54. Which of the following features define human needs:

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  1. are not concurrent;
  2. do not disappear momentarily if they are satisfied;
  3. are unlimited in capacity;
  4. are unlimited in number.

55.If the price elasticity of demand for wine is estimated to be -.6, then a 20% increase in price of wine will lead to .........................in quantity demanded of wine at that price

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  1. 12% increase ;
  2. 12% decrease ;
  3. 19.6% increase ;
  4. 20.6% decrease

56. If the price elasticity of demand of Chicken is +.95. then a 20% increase in price of chicken will lead to in quantity demanded of chicken at that price

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  1. 19 increase ;
  2. 19% decrease ;
  3. 20.95% increase ;
  4. 20.6% decrease

57. If the cross price elasticity of demand for two product is negative, then the two products are .........................

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  1. Complementary to each other ;
  2. Perfectly substitute for each other;
  3. Completely competitive ;
  4. Unrelated

58.If demand of coffee increases by 10% with 20% decline in the price of sugar we can say that

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  1. Cross price elasticity of demand is negative and both the products are complementary to each other;
  2. Cross price elasticity of demand is negative and the goods are substitute;
  3. Cross price elasticity is positive and the products are complementary to each other
  4. None of these

59.If the price of coffee falls by 8% and the demand for Tea declines by 2%. The corss price elasticity of demand for Tea is

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  1. 0.45;
  2. 0.25;
  3. +0.44;
  4. -0.30

60. When the price of complementary products falls, the demand of the other product will

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  1. Fall;
  2. Increases;
  3. Remain stable ;
  4. Drops by 25%

61. When the price of complementary products increases, the demand of the other product will

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  1. Falls;
  2. Increases ;
  3. Remains same ;
  4. Increases by 25%

62. Elasticity of supply depends upon

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  1. Nature of the commodity ;
  2. Production technology ;
  3. Future outlook of prices
  4. All the three

63.A supply curve passing through the origin will have elasticity

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  1. Lessthan 1;
  2. Morethan 1;
  3. Just One;
  4. Zero

64. A supply curve passing through any point on X axis(quantity) will have elasticity

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  1. Less than 1;
  2. More than 1;
  3. Just one;
  4. Zero

65.Supply curve passing through any point on Y axis(Price) will have elasticity

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  1. Lessthan 1;
  2. Morethan 1;
  3. Just One;
  4. Zero

66.Goods which are perfect substitute of each other will have rate of substitution

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  1. Unity;
  2. Lessthan1;
  3. Morethan1;
  4. Zero

67.Goods which are perfect substitute of each other will have elasticity of substitution....

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  1. Unity;
  2. Less than 1;
  3. More than 1 ;
  4. Infinite

68.Goods which are not perfect substitute of each other but have to be consumed in a fixed ratio will have rate of substitution

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  1. Unity;
  2. Lessthan1;
  3. Morethan1;
  4. Zero

69.If a dealer is prepared to supply 1000 sets of a 29" Color TV if the price is `12,000 per set, however if the price raises to `15,000 he is prepared to supply 1,500 pieces. The elasticity of supply of TV set is

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  1. 1;
  2. 2;
  3. 0.75;
  4. 1.4

70. In question No. 201 if at `15,000, the dealer is prepared to supply on 1250 sets of TV the elasticity of supply is

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  1. 1;
  2. 2;
  3. 0.75;
  4. 1.4

71. In question No. 201 if at `15,000, the dealer isprepared to supply on 1100 TV sets, the elasticity of supply is

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  1. 1;
  2. 4;
  3. 0.4;
  4. 1.5

72. Tea and Coffee are Perfect substitute of each other, given the price of Tea and Coffee being `100 and `200 per Kg. a consumer is prepared to buy 3 Kg. of each. If the price of tea remain same and the price of Coffee rises to `400 per kg. the demand for Tea goes to 6 Kg. and that of Coffee falls to 1Kg. The elasticity of substitution between Tea and Coffee is

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  1. 1;
  2. 4;
  3. 5;
  4. 3

73. Select the odd one

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  1. Consumer taste ;
  2. Price of the goods ;
  3. Change in population ;
  4. Increase in price of product

74. Select the odd one

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  1. Price of the product ;
  2. Cost of production ;
  3. No. of suppliers ;
  4. St. duties

75. X a consumer spends his entire income on two commodities A and (B) if price of A increases by 10% and his expenditure on item B remains same, then the price elasticity of item A is

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  1. 1;
  2. <1;
  3. >1;

76. In question No. 207. If the price of item No. A instead of increasing falls by 25% and still his total expenditure as well expenditure on item B remains same, the price elasticity of A will be

  1. 1;

    2. --- Content provided by‍ FirstRanker.com ---

  2. <1;
  3. >1;

77. An individual is spending his entire income on two items A and B equally. If income elasticity of A is 4 what is income elasticity of B

  1. 4;
  2. 2;

    3. --- Content provided by FirstRanker.com ---

  3. 3;
  4. 1

78. If an individual is spending his entire income on two items A and B in the ratio of 60:40. If income elasticity of A is 5 what is income elasticity of B

  1. 4;
  2. 2;

    3. --- Content provided by‌ FirstRanker.com ---

  3. 5;
  4. 1

79. If prices of petrol rises from `40. To `48 per lt., the demand for cars falls from 60 per month to 45 per month, the cross elasticity of petrol and Car is

  1. 1.5;
  2. 1.25;

    3. --- Content provided by⁠ FirstRanker.com ---

  3. 1.0,
  4. 1.59

80. If prices of Eggs rises from `25 per dozen to `30 per dozen, the demand for vegetable burger increases from 30 per day to 40 per day, then the cross elasticity of eggs and vegetable burger is

  1. 1.5;
  2. 1.25;

    3. --- Content provided by⁠ FirstRanker.com ---

  3. 1.65;
  4. 1.86

81. Cross elasticity of a nearly perfect substitute products will be

  1. Infinite;
  2. Zero;

    3. --- Content provided by FirstRanker.com ---

  3. >1;
  4. <1

82. Cross elasticity of unrelated products will be

  1. Infinite;
  2. Zero;

    3. --- Content provided by‍ FirstRanker.com ---

  3. >1;
  4. <1

83. Cross elasticity of complementary products will be

  1. Infinite;
  2. Zero;

    3. --- Content provided by​ FirstRanker.com ---

  3. >1;
  4. <0

84. If two goods are perfect substitutes for one another, the elasticity of substitution will be

  1. Infinite;
  2. Zero;

    3. --- Content provided by‍ FirstRanker.com ---

  3. >1;
  4. <0

85. If two goods are not substitutes at all for one another, the elasticity of substitution will be

  1. Infinite;
  2. Zero;

    3. --- Content provided by‍ FirstRanker.com ---

  3. >1;
  4. <0

86. If the disposal income of a household increases by 10% and the demand for bread falls by 5%. The income elasticity of bread is

  1. 0.5;
  2. -0.5;

    3. --- Content provided by‌ FirstRanker.com ---

  3. 1.0;
  4. -1.0

87. Bread can be considered as

  1. Essential goods ;
  2. Luxury goods;

    3. --- Content provided by‌ FirstRanker.com ---

  3. Inferior goods ;
  4. Normal goods

88. If the disposal income of a household increases by 10% and the demand for X commodity increased by 25%. The income elasticity of X is

  1. 1.5;
  2. -0.5;

    3. --- Content provided by​ FirstRanker.com ---

  3. 2.5;
  4. -2.5

89. In question No. 220 X can be considered as

  1. Essential goods ;
  2. Luxury goods ;

    3. --- Content provided by‌ FirstRanker.com ---

  3. Inferior goods ;
  4. Normal goods

90. If the disposal income of a household increases by 10% and the demand for X commodity increased by 10% the income elasticity of X is

  1. 1.5;
  2. 0.

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    This download link is referred from the post: OU MBA Important Study Materials (Lecture Notes) || Osmania University

This post was last modified on 26 December 2019