| 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 |
The production function relates to |
- A. cost of output
- B. cost of input
- C. output to input
- D. demand to output
|
| 3 |
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
|
| 4 |
Economics of scale are of two kinds |
- A. temporary and permanent
- B. internal and external
- C. managerial and industrial
- D. natural and artificial
|
| 5 |
Internal economies of scale include |
- A. risk-bearing economics
- B. trade mark
- C. managerial economies
- D. a and c of above
|
| 6 |
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
|
| 7 |
When total product falls, marginal product is. |
- A. Zero
- B. Positive
- C. Negative
- D. Falling
|
| 8 |
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
|
| 9 |
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
|
| 10 |
The law of variable proportions was presented by. |
- A. Jevens
- B. Rayon
- C. Hicks
- D. Valentine
|
