Question # 1

Law of increasing return is more applicable in:

Choose an answer

Trade sector

Industrial sector

Agricultural sector

Power sector

To increase profit a firm minimizes

Choose an answer

Revenues

Costs

Demand

Supply

Law of decreasing return is also known as:

Choose an answer

Increasing cost

Constant cost

Diminishing cost

Both (a) and (c)

When average product is maximum, marginal product is:

Choose an answer

Positive

Equal to AP

Zero

Negative

Monopoly is opposite to

Choose an answer

Perfect competition

Imperfect competition

Perfect competition and imperfect competition both

Oligopoly

Firm earns maximum profit at the point where

Choose an answer

Difference between total costs and total revenue is highest and the total revenue curve is above

Total costs and total revenue curves intersect each other

Total costs curve is above the total revenue curve

Difference between total costs and total revenue is minimum

The difference between total revenue (TR) and total cost (TC) is called

Choose an answer

Loss

Profit

Profit or loss

Utility

Firm earns abnormal profit, when

Choose an answer

AC=AR

AR>AC

AR<AC

AC=MC

One condition which is not included in perfect competition conditions

Choose an answer

Homogeneity of product

Difference in price

Large number of buyers and sellers

Perfect knowledge of the market

A monopolist firm usually earns

Choose an answer

Normal profit

Abnormal profit

Minimum loss

Abnormal loss

Till marginal cost curve remains below the marginal revenue curve, from the economic point of view, increase in production for a firm is

Choose an answer

Beneficial

Unbeneficial

May be beneficial or unbeneficial

Neither beneficial nor unbeneficial

When total production decreases, marginal product is:

Choose an answer

Positive

Negative

Zero

Infinite

The formula of calculating total revenue is

Choose an answer

P x Q

P x AC

AC x Q

TC / Q

Under monopoly, in the long run a firm

Choose an answer

Earns normal profit

Earns abnormal profit

Bears minimum loss

Bears abnormal loss

Which law is applicable when human and natural forces are balance ?

Choose an answer

Increasing cost

Constant cost

Diminishing cost

Both (a) and (c)

When total production increases, marginal product is:

Choose an answer

Positive

Negative

Zero

Infinite

More Classes

Other Links

Principles of Economics Icom Part 1 English Medium Chapter 7 Online Test MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer