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71.

Production is a function of:

A.	Profits	B.	Costs
C.	Inputs	D.	Price

72.

An ISO-product curve slopes:

A.	Downward to the left	B.	Downward to the right
C.	Upward to the left	D.	Upward to the right

73.

A vertical supply curve parallel to the price axis implies that the elasticity of supply is:

A.	Zero	B.	Indinity
C.	Equal to one	D.	Greater than zero but less than infinity

74.

The supply of a commodity refers to:

A.	Actual production of the commodity	B.	Total existing stock of the commodity
C.	Stock available for sale	D.	Amount of the commodity offered for sale at a particular price per unit of time

75.

Which cost increases continuously with the increase in production?

A.	Average cost	B.	Marginal cost
C.	Fixed cost	D.	Variable cost

76.

Which of the following cost curves is never Un-shaped?

A.	Average cost curve	B.	Marginal cost curve
C.	Average variable cost curve	D.	Average fixed cost curve

77.

Total costs in the short-term are classified into fixed costs and varibale costs. Which one of the following is a variable cost?

A.	Cost of raw materials	B.	Cost of equipment
C.	Interest payment on past borrowing	D.	Payment of rent on buildings

78.

In the short term, when the output of a firm increases, its average fixed cost:

A.	Increase	B.	Decrease
C.	Remains constant	D.	First declines and then rises

79.

A significant property of the Cobb - Douglas production function is that the elasticity of substitution between inputs is:

A.	Equal to unity	B.	More than unity
C.	Less than unity	D.	Zero

80.

The production techniques are technically efficient:

A.	Below the lower ridge line	B.	Above the upper ridge line
C.	Between the two ridge lines	D.	On the upper ridge line