| 1 |
The law of variable proportions was presented by. |
- A. Jevens
- B. Rayon
- C. Hicks
- D. Valentine
|
| 2 |
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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| 3 |
Commercial economics are a pat of: |
- A. Internal economics
- B. External economics
- C. Economies of scale
- D. None of the three
|
| 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
|
| 5 |
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
|
| 6 |
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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| 7 |
When a firm using a fixed amount of land and capital takes on more workers, it finds that marginal product(MP) of labour falls but the average product(AP) of labour rises. This can be explained by the factors that |
- A. MP of labour is grater than AP of labour
- B. additional workers are more efficient
- C. MP and AP are equal
- D. AP is maximum
|
| 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 |
Which one will determine scale of production . |
- A. Financial resources
- B. Production techniques
- C. Extant of the market
- D. All the above
|
| 10 |
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
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