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 (TP) reaches its maximum, Marginal product (MP) is_ |
- A. Zero
- B. Positive
- C. Negative
- D. Rising
|
3 |
Law of diminishing returns applies more in: |
- A. Industry
- B. Agriculture
- C. Mining
- D. Construction
|
4 |
In the second stage of the law of variable of proportions the average product: |
- A. Rises
- B. Remains constant
- C. Falls
- D. None of the three
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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 |
during short period, diminishing returns may follow because |
- A. quantity of labour is fixed
- B. quality of labour is fixed
- C. quantity of capital is fixed
- D. quantity of any one factor is fixed
|
7 |
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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8 |
In law of diminishing returns at least one factor |
- A. must be constant
- B. must be owned by the firm
- C. must be purchasable
- D. must be efficient
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9 |
When MP is zero, TP is |
- A. minimum
- B. maximum
- C. rising
- D. falling
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10 |
The concept of internal and external economics was given by. |
- A. Adam Smith
- B. Robbins
- C. J.M.Keynes
- D. Alfred Marshall
|