Economics MCQS with Answers 1st Year
Laws of return apply to firms working in
monopoly
all kinds of market situations
perfect competition
small firm
Economies of scale
occur when increase in input less than proportionate increase in output
suggest that firm’s marginal cost curve lies above its average cost curve
suggest that the firm’s marginal cost curve is declining
occur when average cost is falling
Which of the following saying describes diminishing marginal returns in the short run?
A stitch in time saves nine
A rolling stone gathers no moss
Too many cooks spoil the broth
When the cat is away, the mouse will play
When total product (TP) reaches its maximum, Marginal product (MP) is_
Rising
Zero
Positive
Negative
Which of the following is example of external economies of scale?
Technical progress leads to development of machines at low price
A firm starts producing by products
Hiring of specialized staff due to increase in scale of production
Discount on purchases of raw materials
Commercial economics are a pat of:
Internal economics
External economics
Economies of scale
None of the three
The law of variable proportions was presented by.
Rayon
Valentine
Hicks
Jevens
In the second stage of the law of variable of proportions the average product:
None of the three
Falls
Rises
Remains constant
The production function relates to
demand to output
cost of input
output to input
cost of output
Which one is the third stage of production under law of variable proportions
Negative marginal return
Increasing marginal return
Decreasing average returns
Increasing average return
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