| 1 |
The law of variable proportions was presented by. |
- A. Jevens
- B. Rayon
- C. Hicks
- D. Valentine
|
| 2 |
Which one will determine scale of production . |
- A. Financial resources
- B. Production techniques
- C. Extant of the market
- D. All the above
|
| 3 |
When total product (TP) reaches its maximum, Marginal product (MP) is_ |
- A. Zero
- B. Positive
- C. Negative
- D. Rising
|
| 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 |
Marginal product indicates rate of change of |
- A. total product
- B. average product
- C. variable product
- D. all of the above
|
| 6 |
When average product falls marginal product |
- A. Rises
- B. Also falls
- C. Remain equal to average product
- D. Does not change
|
| 7 |
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
|
| 8 |
When total product falls, marginal product is. |
- A. Zero
- B. Positive
- C. Negative
- D. Falling
|
| 9 |
Laws of return apply to firms working in |
- A. perfect competition
- B. monopoly
- C. small firm
- D. all kinds of market situations
|
| 10 |
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
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