| 1 |
Law of diminishing returns applies more in: |
- A. Industry
- B. Agriculture
- C. Mining
- D. Construction
|
| 2 |
The law of variable proportions was presented by. |
- A. David Ricords
- B. Alfred Marshall
- C. W.J.L. Ryan
- D. Pareto
|
| 3 |
When total product rises marginal product. |
- A. Remains the same
- B. Falls
- C. Also rises
- D. None of the three
|
| 4 |
Which of the following is example of external economies of scale? |
- A. Discount on purchases of raw materials
- B. Technical progress leads to development of machines at low price
- C. Hiring of specialized staff due to increase in scale of production
- D. A firm starts producing by products
|
| 5 |
Laws of return apply to firms working in |
- A. perfect competition
- B. monopoly
- C. small firm
- D. all kinds of market situations
|
| 6 |
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
|
| 7 |
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
|
| 8 |
If in a production process, all inputs are increased by 10% and output increase by less than 10%, then it is called |
- A. economies of scale
- B. diseconomies of scale
- C. diminishing marginal returns
- D. negative economies
|
| 9 |
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
|
| 10 |
When total product falls, marginal product is. |
- A. Zero
- B. Positive
- C. Negative
- D. Falling
|
