| 1 |
Marginal product curve intersects average product curve when AP curve is |
- A. minimum
- B. maximum
- C. rising
- D. falling
|
| 2 |
Economies and diseconomies of scale determine the shape of |
- A. long run AC curve
- B. short run AC
- C. average fixed cost
- D. none of the above
|
| 3 |
When business expands beyond its optimum level what type of economics will it be getting. |
- A. Diseconomies
- B. Internal economies
- C. External economies
- D. Maanagerial economics
|
| 4 |
The production function relates to |
- A. cost of output
- B. cost of input
- C. output to input
- D. demand to output
|
| 5 |
Law of diminishing returns applies more in: |
- A. Industry
- B. Agriculture
- C. Mining
- D. Construction
|
| 6 |
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
|
| 7 |
The law of increasing returns is also known as: |
- A. Law of increasing cost
- B. Law of diminishing cost
- C. Law of constant cost
- D. None of the three
|
| 8 |
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
|
| 9 |
Commercial economics are a pat of: |
- A. Internal economics
- B. External economics
- C. Economies of scale
- D. None of the three
|
| 10 |
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
|
