| 1 |
When average product falls marginal product |
- A. Rises
- B. Also falls
- C. Remain equal to average product
- D. Does not change
|
| 2 |
When MP curve cuts AP curve, the AP is at its. |
- A. Lowest point
- B. Highest point
- C. Neither of the two
- D. Eighter of the two
|
| 3 |
Which one is the third stage of production under law of variable proportions |
- A. Decreasing average returns
- B. Increasing average return
- C. Negative marginal return
- D. Increasing marginal return
|
| 4 |
The maximum point of TP curve is at quantity of labour where |
- A. Average physical product of labour is equal to 1
- B. MPP of labour is at its maximum
- C. curves of APP and MPP of labour intersect
- D. MPP of labour is zero
|
| 5 |
An important factor which promotes large scale production is: |
- A. Extant of market
- B. Revolutionary changes in social life
- C. Culture and civilization
- D. All the three
|
| 6 |
Law of diminishing returns is a universal law as: |
- A. It does apply in all aspects of an economy.
- B. Basically it applies in agriculture.
- C. It is hard to check it.
- D. It applies in industry as well
|
| 7 |
When total product falls, marginal product is. |
- A. Zero
- B. Positive
- C. Negative
- D. Falling
|
| 8 |
Law of decreasing returns generates |
- A. law of economic growth
- B. law of increasing costs
- C. law of variable costs
- D. law of decreasing costs
|
| 9 |
Law of diminishing returns applies more in: |
- A. Industry
- B. Agriculture
- C. Mining
- D. Construction
|
| 10 |
In law of diminishing returns at least one factor |
- A. must be constant
- B. must be owned by the firm
- C. must be purchasable
- D. must be efficient
|
