Given the Cobb-Douglas production function;$$Q = AK^\alpha L^\beta$$ Q represents:

• A) Constant
• B) Capital
• C) Output
• D) Labor

Given the Cobb-Douglas production function;$$Q = AK^\alpha L^\beta$$ K represents:

• A) Output
• B) Capital
• C) Labor
• D) Constant

In the consumption function; C = 1250 + 0.85Y, marginal propensity to consume is:

• A) 1250
• B) 0.85
• C) 1250.85
• D) 1249.15

$$2x + 3y = 20$$ is an example of:

• A) Cubic function
• B) Production function
• C) Quadratic function
• D) Implicit function

Which of the following is used to find out the Hicksian demand functions?

• A) Roy’s identity
• B) Cobweb theorem
• C) Hotelling’s Lemma
• D) Shephard Lemma

$$\begin{gathered} y = f(g(x)) \hfill \\ \frac{{dy}} {{dx}} = \frac{d} {{dx}}\{ f(g(x))\} = f'(g(x)).g'(x) \hfill \\\ \end{gathered}$$ Given the above expression; $$f'$$ represents:

• A) Outside function
• B) Inside function
• C) Derivative of inside function
• D) Derivative of outside function

Envelope theorem is based on:

• A) Matrices
• B) Calculus
• C) Algebra
• D) Equilibrium

Given the Cobb-Douglas production function;$$Q = AK^\alpha L^\beta$$ A represents:

• A) Constant
• B) Output
• C) Labor
• D) Capital

Cost of raw material is an example of:

• A) Sunk cost
• B) Opportunity cost
• C) Variable cost
• D) Fixed cost

Cost which does not change with the level of output is called:

• A) Opportunity cost
• B) Fixed cost
• C) Variable cost
• D) Sunk cost

$$\pi = PQ - wK$$ is the profit function of the labor market; what does K show in this function?

• A) Quantity of capital input
• B) Price of capital input
• C) Quantity of output
• D) Price of output

$$F(U,x_1 ,x_2 ) = 0$$ shows:

• A) Cubic function
• B) Quadratic function
• C) Cubic function
• D) Implicit function

Total derivative of the function $$y = f(g(w),w)$$ is:

• A) $$\frac{{dy}} {{dw}} = dx + f_w .\frac{{dw}} {{dw}}$$
• B) $$\frac{{dy}} {{dw}} = f_x .\frac{{dx}} {{dw}} + dx$$
• C) $$\frac{{dy}} {{dw}} = \frac{{dx}} {{dw}} + \frac{{dw}} {{dw}}$$
• D) $$\frac{{dy}} {{dw}} = f_x .\frac{{dx}} {{dw}} + f_w .\frac{{dw}} {{dw}}$$

What happens as a result of technological changes in the production process?

• A) No change in the production function
• B) Production function remain at its initial condition
• C) Production function shifts outward
• D) Production function shifts inward

Which of the following is the total differential of $$U = f(x_1 ,x_2 )$$?

• A) $$dU = U_1 .dx_1 /U_2 .dx_2$$
• B) $$dU = U_1 + U_2$$
• C) $$U_1 .dx_1 = U_2 .dx_2$$
• D) $$dU = U_1 .dx_1 + U_2 .dx_2$$

Cross price elasticity of demand is equal to:

• A) Percentage change in quantity demanded of one product / Percentage change in price of another product
• B) Percentage change in quantity demanded / Percentage change in price
• C) Percentage change in supply / Percentage change in demand
• D) Percentage change in quantity demanded / Percentage change in income

$$\frac{{\partial F(Q,K,\overline L )}} {{\partial K}}$$ shows:

• A) Output elasticity of labor
• B) Marginal product of capital
• C) Marginal product of labor
• D) Output elasticity of capital

Given the Cobb-Douglas production function; $$Q = AK^\alpha L^\beta$$ L represents:

• A) Constant
• B) Output
• C) Labor
• D) Capital

Formula to calculate total cost is:

• A) Average cost / Output (Q)
• B) Average cost × Output (Q)
• C) Marginal cost / Output (Q)
• D) Marginal cost + Output (Q)

Cross partial derivative of the function; $$MP_M = (\ln K).(\ln L)$$ with respect to $$(\ln L)$$ is:

• A) $$(\ln L)$$
• B) $$(\ln M)$$
• C) $$(\ln K)$$
• D) $$(\ln L) + (\ln M)$$