GATE Humanities and Social Sciences - Economics Practice Quiz

Question 1

For a production function Q = f(L, K), the marginal product of labour at a given input combination is best defined as:

Accepted Answer

The additional output obtained from a one-unit increase in labour, holding capital constant

Question 2

A production function is given by Q = L^0.8 K^0.5. Which statement is correct?

Accepted Answer

It exhibits increasing returns to scale because the sum of exponents exceeds 1

Question 3

A firm’s production function is Q = min{2L, 3K}. If L = 6 and K = 5, then output is:

Accepted Answer

12

Question 4

When total product is at its maximum with respect to labour, holding capital fixed, the marginal product of labour is:

Accepted Answer

Zero

GATE Humanities and Social Sciences - Economics — Mock tests