Question 1

At the 'point of inflection'

Accepted Answer

A)  MP is maximum
B)  AP is maximum
C)  TP is maximum
D)  All of the above A

Question 2

Let a firm employs 5 labourers and produces 120 units of output. When 6 labourers are employed the firm produces 136 units of output. Then the marginal product is ---

Accepted Answer

A)  120
B)  136
C)  6
D)  16 D

Question 3

The law of Diminishing returns is applicable to:

Accepted Answer

A)  Agriculture only
B)  Industry only
C)  In short-run only
D)  Universally D

Question 4

Production is said to be efficient when:

Accepted Answer

A)  The re-allocation of resources cannot increase the production o the article even by one unit
B)  More output is produced with the given input
C)  Resources are fully employed
D)  All of the above

Question 5

Economies of scale refers to:

Accepted Answer

A)  Advantages resulting from large scale production
B)  Disadvantages resulting from large scale production
C)  Advantages resulting from the increase in the number of consumers
D)  All of the above

Question 6

Economics is a social science because

Accepted Answer

A)  The central point in economics is man and his problems
B)  Economics uses scientific approach to derive its laws
C)  Like History, Politics and Psychology economics deals with the problems of human being
D)  All of the above

Question 7

The wants of the people are

Accepted Answer

A)  Limited
B)  Satiable
C)  Unlimited
D)  All of the above

Question 8

Which one of the following is an example of an economic good

Accepted Answer

A)  Sunlight
B)  Air
C)  Petrol
D)  None of the above

Question 9

A firm produces 200 units of commodity X by employing 10 workers and 240 units of the same commodity by employing 12 workers. Then the Average Product of the worker is --------

Accepted Answer

A)  200
B)  240
C)  20
D)  40

Question 10

The subject matter of economics is concerned with

Accepted Answer

A)  Production
B)  Consumption
C)  Distribution and exchange
D)  All of the above

Question 11

Production function expresses

Accepted Answer

A)  The relationship between input and output
B)  How maximum output is produced with the given input
C)  What is the least-cost combination of input to produce the given output
D)  All of the above

Question 12

Marginal product of a factor is

Accepted Answer

A)  The additional product received by the firm due to the employment of an additional unit of a variable factor
B)  Addition to the total product when one more unit of a factor is employed
C)  The rate of change in the total product per unit change in the variable factor.
D)  All of the above

Exam 1: Economics: Concepts, Problems, and Analysis