| 1 |
The government constructed a new water reservoir for the purpose of irrigation; this might be taken as |
- A. increase in supply of capital
- B. increase in supply of land
- C. increase in supply of land and supply of capital
- D. none of these
|
| 2 |
When diseconomies of scale outweigh economies of scale the |
- A. long run AC curve rises
- B. marginal cost falls
- C. long run ATC curve falls
- D. AVC falls
|
| 3 |
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
|
| 4 |
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
|
| 5 |
Economics of scale are of two kinds |
- A. temporary and permanent
- B. internal and external
- C. managerial and industrial
- D. natural and artificial
|
| 6 |
Marginal product curve intersects average product curve when AP curve is |
- A. minimum
- B. maximum
- C. rising
- D. falling
|
| 7 |
An important factor which promotes large scale production is: |
- A. Extant of market
- B. Revolutionary changes in social life
- C. Culture and civilization
- D. All the three
|
| 8 |
Law of diminishing returns applies more in: |
- A. Industry
- B. Agriculture
- C. Mining
- D. Construction
|
| 9 |
Internal economies of scale include |
- A. risk-bearing economics
- B. trade mark
- C. managerial economies
- D. a and c of above
|
| 10 |
When average product falls marginal product |
- A. Rises
- B. Also falls
- C. Remain equal to average product
- D. Does not change
|
