Test Preparation on UGC NET Economics Practice Set-6
In the market for oranges, a rise in income withother things remaining unchanged, will lead to
In a market, if ?A? learns of ?B?s demand for agood, he may be induced to demand more of it,since everybody else is demanding the good.The effect of this kind of ?keeping up with theJoneses? psychology on individual demand iscalled as
The additivity of utility in the Marshalliananalysis is based on the assumptions of
The prices of two goods X and Y are: PX = Rs. 6and PY = Rs. 3, respectively. If a consumerspending, his entire income on these twocommodities is at a point on the budgetconstraint where MRSXY (marginal rate ofsubstitution of X for Y) is 3 : 1, then
Hicks substitution effect for a fall in the price ofa commodity, other things remaining constant,is given by
In the case of an inferior good
Which one of the following is not anassumption of the theory of revealed preferencedeveloped by P.A. Samuelson?
Consider two straight line demand curve NMand RS in the given figure. Select the correctstatement from amongst the following:
The production function X = AL3/5 K1/2 ishomogeneous of degree
If there is perfect substitution between twofactors of production, the shape of isoquant is
In a two-input situation (K and L), if one of theinputs, say L, is available free of cost to aproducer, then the factor price curve or theproducer?s budget curve is
Consider the following statements:If all the factors of production are paid accordingto their respective marginal products, the totalproduct would be1. exhausted under constant returns to scale.2. more than exhausted under the increasingreturns to scale.3. less than exhausted under decreasingreturns to scale.Which of these statements is/are correct?
In the perfect competition, the downwardsloping part of the marginal value productivitycurve of a factor shows
Consider the following statements:1. The increasing returns to scale imply thatthe marginal product of a variable factor willalways increase.2. The constant returns to scale imply that themarginal product of a variable factor willalways diminish.3. Managerial diseconomies constitute animportant cause of decreasing returns toscale.Which of these statements is/are correct?
To produce a given level of output, a firmmaximizes profits when the marginal rate oftechnical substitution is equal to the ratio offactor prices. This principle is known as
Which of the following statements is notcorrect?
Right line refers to the locus of points of
If for a particular combination of labour andcapital, the marginal productivity of capital is 4units of output and the marginal rate of technicalsubstitution is 2 units of capital per unit oflabour, then the marginal productivity of labourwill be
In which one of the following market situations,are the firms mutually interdependent in pricingoutput decisions?
A queue of a large number of farmers before asingle cold storage in the area is a case of