Economics MCQS with Answers 1st Year
When business expands beyond its optimum level what type of economics will it be getting.
Internal economies
External economies
Diseconomies
Maanagerial economics
The law of increasing returns is also known as:
Law of diminishing cost
None of the three
Law of constant cost
Law of increasing cost
When total product falls, marginal product is.
Falling
Zero
Positive
Negative
In law of diminishing returns at least one factor
must be efficient
must be owned by the firm
must be purchasable
must be constant
Law of diminishing returns applies more in:
Mining
Industry
Agriculture
Construction
When average product (AP) and marginal product (MP) are rising.
AP > MP
AP < MP
AP = MP = 0
AP = MP
The law of variable proportions was presented by.
David Ricords
Pareto
W.J.L. Ryan
Alfred Marshall
When average product falls marginal product
Remain equal to average product
Does not change
Also falls
Rises
The maximum point of TP curve is at quantity of labour where
curves of APP and MPP of labour intersect
Average physical product of labour is equal to 1
MPP of labour is at its maximum
MPP of labour is zero
Economies and diseconomies of scale determine the shape of
average fixed cost
long run AC curve
short run AC
none of the above
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