| 1 |
Economies of scale |
- A. occur when increase in input less than proportionate increase in output
- B. suggest that firm's marginal cost curve lies above its average cost curve
- C. suggest that the firm's marginal cost curve is declining
- D. occur when average cost is falling
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| 2 |
The concept of internal and external economics was given by. |
- A. Adam Smith
- B. Robbins
- C. J.M.Keynes
- D. Alfred Marshall
|
| 3 |
The law of variable proportions was presented by. |
- A. David Ricords
- B. Alfred Marshall
- C. W.J.L. Ryan
- D. Pareto
|
| 4 |
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
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| 5 |
Marginal product indicates rate of change of |
- A. total product
- B. average product
- C. variable product
- D. all of the above
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| 6 |
When total product (TP) reaches its maximum, Marginal product (MP) is_ |
- A. Zero
- B. Positive
- C. Negative
- D. Rising
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| 7 |
The slopes of average and marginal products curves are always zero under: |
- A. Law of increasing returns
- B. Law of diminishing returns
- C. Law of constant returns
- D. Law of variable propoitions
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| 8 |
Which one is the small scale production. |
- A. Bata shoe factory
- B. A barber shop
- C. kohinoor Textile Industries
- D. Sufi soap
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| 9 |
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
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| 10 |
Which of the following saying describes diminishing marginal returns in the short run? |
- A. When the cat is away, the mouse will play
- B. Too many cooks spoil the broth
- C. A rolling stone gathers no moss
- D. A stitch in time saves nine
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