Question # 1

Cost of a firm on the optimum combination of factors of production is

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Minimum

Maximum

Reasonable

Positive

With the increase of output, which cost of production increases:

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VC

AC

FC

MC

According to which economist, some factors are indivisble

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Adam Smith

Marshall

Davenport

Hobson

The rate change in total cost is:

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TR

MC

MR

TC

Firm's cost depends upon:

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Revenue

Supply

Price

Output

According to which theory every factor of production gets the reward of its services equal to its marginal product

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Demand and supply theory

Liquidity preference theory

Marginal productivity theory

Uncertainty theory

Long run average cost curve is:

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Planning curve

Envelope curve

Flatter curve

All of three

MPP stand is

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Marginal price product

Marginal Physical Product

Marginal Physical Price

Marginal Perfect Price

Production of the last unit of a factor of production is called

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Total product

Average product

Marginal product

Positive product

Self owned resources are known as:

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Implicit cost

Explicit cost

Opportunity cost

Sunk cost

Under perfect competition average revenue is equal to:

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Average cost

Price

Marginal revenue

Both b and c

Fixed cost consists of:

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Rent

Salaries

Interest

All of them

Marginal productivity theory was presented by

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Adam Smith and Malthus

Marshall and J.B Clark

Robbins and Keyness

Pigou and Cannon

Which law is applicable on production process under marginal productivity theory

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Law of increasing return

Law of constant return

Law of decreasing return

Law of decreasing cost

All factors of production are variable in the:

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Market period

Long period

Short period

All of these

Under monopoly the slopes of AR and MR are:

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Zero

Positive

Negative

None of three

If a firm does not produce anything then its variable cost is:

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Minimum

Negative

Maximum

Zero

AR curve is also called:

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Supply curve

Demand curve

Utility curve

Cost curve

According to which economist, it is difficult to find marginal product

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Robbins and Keynes

Marshall and pigou

Adam Smith and Mathuls

Taussing and Davenport

When Ac is rising:

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AC = MC

MC > AC

MC < AC

Both (b) and (c)

Next best alternative use of resources is known as:

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Implicit cost

Explicit cost

Opportunity cost

Sunk cost

Marginal revenue product curve is called

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Demand curve of the firm

Supply curve of the firm

Demand curve of the industry

Supply curve of industry

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Principles of Economics Icom Part 1 English Medium Chapter 8 Online Test MCQs With Answers

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