| 1 |
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
|
| 2 |
When total product falls, marginal product is. |
- A. Zero
- B. Positive
- C. Negative
- D. Falling
|
| 3 |
Marginal product curve intersects average product curve when AP curve is |
- A. minimum
- B. maximum
- C. rising
- D. falling
|
| 4 |
Which of the following is example of external economies of scale? |
- A. Discount on purchases of raw materials
- B. Technical progress leads to development of machines at low price
- C. Hiring of specialized staff due to increase in scale of production
- D. A firm starts producing by products
|
| 5 |
Law of diminishing returns applies more in: |
- A. Industry
- B. Agriculture
- C. Mining
- D. Construction
|
| 6 |
When diseconomies of scale outweigh economies of scale the |
- A. long run AC curve rises
- B. marginal cost falls
- C. long run ATC curve falls
- D. AVC falls
|
| 7 |
Marginal product indicates rate of change of |
- A. total product
- B. average product
- C. variable product
- D. all of the above
|
| 8 |
Economics of scale are of two kinds |
- A. temporary and permanent
- B. internal and external
- C. managerial and industrial
- D. natural and artificial
|
| 9 |
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
|
| 10 |
When total product (TP) reaches its maximum, Marginal product (MP) is_ |
- A. Zero
- B. Positive
- C. Negative
- D. Rising
|
