| 1 |
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
|
| 2 |
The law of variable proportions was presented by. |
- A. Jevens
- B. Rayon
- C. Hicks
- D. Valentine
|
| 3 |
When average product (AP) and marginal product (MP) are rising. |
- A. AP > MP
- B. AP = MP
- C. AP < MP
- D. AP = MP = 0
|
| 4 |
Which one will determine scale of production . |
- A. Financial resources
- B. Production techniques
- C. Extant of the market
- D. All the above
|
| 5 |
Economies of scale |
- A. occur when increase in input less than proportionate increase in output
- B. suggest that firm's marginal cost curve lies above its average cost curve
- C. suggest that the firm's marginal cost curve is declining
- D. occur when average cost is falling
|
| 6 |
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
|
| 7 |
Which of the following saying describes diminishing marginal returns in the short run? |
- A. When the cat is away, the mouse will play
- B. Too many cooks spoil the broth
- C. A rolling stone gathers no moss
- D. A stitch in time saves nine
|
| 8 |
When total product falls, marginal product is. |
- A. Zero
- B. Positive
- C. Negative
- D. Falling
|
| 9 |
When average product falls marginal product |
- A. Rises
- B. Also falls
- C. Remain equal to average product
- D. Does not change
|
| 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
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