Which of the following sentences is/are true? i. All isoclines are expansion paths but all expansion paths are not isoclines. ii. Short-run production functions involve adjusting all inputs, including fixed inputs like land or capital, to affect output. iii. Stock resources are the resources which are not used in one period of production but can be stored for a later period.
Only iii
Statement i is true. All isoclines are expansion paths, but the reverse is not true. Statement ii is false. Short-run production functions do not adjust fixed inputs. Statement iii is true. Stock resources are defined as resources not used in a given period but stored for later use. Therefore, only statements i and iii are true.
Similar Questions
In relation to Production Possibilities Curve (PPC), which of the following statements is INCORRECT?
In relation to Production Possibilities Curve (PPC), which of the following statements is INCORRECT?
The ________ explains the relation between inputs and outputs in a short period.
The laws of _____ describe the technically possible ways of increasing the level of output.
If the proportionate increase in the output is less than proportionate increase in the inputs it is said to be ____ returns.
The Long-Run Analysis of Production is done under which one of the following law of Production?
The ______ is a hypothetical representation of the amount of two different goods that can be obtained by shifting resources from the production of one, to the production of the other.
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(1) MR = MC
(2) AC = MC = AR = MR
(3) MC is falling
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Important Questions from Microeconomics
Which of the following statement is correct?
I. Indifference curves are sloping from left to right.
II. Higher indifference curve gives a higher level of utility.
If in a production process, all inputs are tripled, which of the following statements follows?
I. If the output is tripled, then decreasing returns to scale apply.
II. When the output is doubled, constant returns to scale apply.
III. If the output is more than tripled, then increasing returns to scale apply.
A market, in which there are a large number of firms, homogeneous product, infinite elasticity of demand for an individual firm and no control over price by firms, is termed as________.
If the two goods are substituted, then the indifference curve will be:
The government multiplier is given by (where c = MPC and t = tax rate)
