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Sunday, November 13, 2011

::: vuaskari.com ::: ECO 401 MCQ'S

Question No: 8    ( Marks: 1 )    - Please choose one

 A production function:

 

       Relates inputs with output. ………………

       Generates a curve that is upward sloping.

       Shows diminishing marginal product of an input, since it gets flatter as output rises.

       All of the given options.

   

Question No: 9    ( Marks: 1 )    - Please choose one

 If isoquants are straight lines, it means that:

       Only one combination of inputs is possible.

       There is constant returns to scale.

       Inputs have fixed costs at all use rates.

       The marginal rate of technical substitution of inputs is constant.

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