10.

پا

12.

13.
14.
15.

2 D 52809

For perfectly inelastic demand, elasticity of demand is
(a) One. (b) Zero.
(c) Infinite. (d) Negative.
Elasticity of substitution between two perfect substitutes is
(a) Infinity. (b) Zero.
(6) One. (d) Positive.
The concept of consumer surplus provides a powerful theoretical argument for
(a) Direct tax. (b) Indirect tax.
(c) Marginal tax. (d) GST.
AP is maximum when
(a) MPAP.
(0) MP=AP. (d) None of these.

An example for linear homogenous production function is

(a) Logical production function. (b) Cobb-Douglas production function.

(c) Arrow production function. (d) Minhas production function.
MRTS is associated to ————

(a) Indifference curves. (b) Utility curve.

(c) Equal product curve. (d) Production possibility curve.

Producers equilibrium is achieved at point where ————.,
(a) MRTS> Price. (b) MRTS(€) MRTS = price. (d) None of these.
(12 x % = 6 marks)
Part B (Very Short Answer Type Questions)

Answer any ten questions,
Each question carries 2 marks.

Expansion path.
Isoquants.
Inferior goods.