Practice Test

Q1) Which of the following is considered production in economics ? Show Answer

Q2) Identify the correct statements Show Answer

Q3) Which of the following is not a characteristic of land ? Show Answer

Q4) Which of the following is true Show Answer

Q5) In the production of wheat ,all of the following are variable factors that are used by the farmer except ; Show Answer

Q6) The marginal product of a variable input is best described as : Show Answer

Q7) Diminishing marginal returns implies Show Answer

Q8) The short run, as economists use the phrase , is characterized by Show Answer

Q9) The marginal , average , & total product curves encountered by the firm producing in the short run exhibits all of the following relationships except Show Answer

Q10) To economists , the main difference between the short run & the long run is that Show Answer

Q11) Which of the following is the best definition of the production function ? Show Answer

Q12) The 'law of diminishing returns' applies to Show Answer

Q13) Diminishing returns occurs Show Answer

Q14) Use this information :- Hours of labour : 0 , Total Output : 0 , Marginal Product : 0 ;, Hours of labour : 1 , Total Output : 100 , Marginal Product : 100 ;,Hours of labour : 2 , Total Output : 0 , Marginal Product : 80 ;,Hours of labour : 3 , Total Output : 240 , Marginal Product : 0 ;, What is the output when 2 hours of labour are employed ? Show Answer

Q15) Use this information :- Hours of labour : 0 , Total Output : 0 , Marginal Product : 0 ;, Hours of labour : 1 , Total Output : 100 , Marginal Product : 100 ;,Hours of labour : 2 , Total Output : 0 , Marginal Product : 80 ;,Hours of labour : 3 , Total Output : 240 , Marginal Product : 0 ;, What is the marginal product of the 3rd hour of labour ? Show Answer

Q16) Use this information :- Hours of labour : 0 , Total Output : 0 , Marginal Product : 0 ;, Hours of labour : 1 , Total Output : 100 , Marginal Product : 100 ;,Hours of labour : 2 , Total Output : 0 , Marginal Product : 80 ;,Hours of labour : 3 , Total Output : 240 , Marginal Product : 0 ;, What is the average product of the first 3 hours hour of labour ? Show Answer

Q17) What is the cost increase continuously with the increase in production ? Show Answer

Q18) Which of the following cost curves is never 'U' shaped ? Show Answer

Q19) Total cost in the short run is classified into fixed cost & variable costs .Which 1 of the following is variable cost ? Show Answer

Q20) In short run ,when the output of a firm increases ,its average fixed cost Show Answer

Q21) The cost of one thing in the term of the alternative given up is known as Show Answer

Q22) With which of the following is the concept of marginal cost closely related ? Show Answer

Q23) Which of the following is true ? Show Answer

Q24) Which of the fallowing is an example of an 'explicit cost ' ? Show Answer

Q25) Which of the fallowing is an example of an ' implicit cost ' ? Show Answer

Q26) Use this information :- Output (O) ; - 0 , Total Cost (TC) : Rs.240 , Output (O) ; - 1 , Total Cost (TC) : Rs.330 ,Output (O) ; - 2 , Total Cost (TC) : Rs.410 ,Output (O) ; - 3 , Total Cost (TC) : Rs.480 ,Output (O) ; - 4 , Total Cost (TC) : Rs.540 ,Output (O) ; - 5 , Total Cost (TC) : Rs.610 ,Output (O) ; - 6 , Total Cost (TC) : Rs.690 , The average fixed cost of 2 units is Show Answer

Q27) Use this information :- Output (O) ; - 0 , Total Cost (TC) : Rs.240 , Output (O) ; - 1 , Total Cost (TC) : Rs.330 ,Output (O) ; - 2 , Total Cost (TC) : Rs.410 ,Output (O) ; - 3 , Total Cost (TC) : Rs.480 ,Output (O) ; - 4 , Total Cost (TC) : Rs.540 ,Output (O) ; - 5 , Total Cost (TC) : Rs.610 ,Output (O) ; - 6 , Total Cost (TC) : Rs.690 , The marginal cost of the sixth units of output is Show Answer

Q28) Use this information :- Output (O) ; - 0 , Total Cost (TC) : Rs.240 , Output (O) ; - 1 , Total Cost (TC) : Rs.330 ,Output (O) ; - 2 , Total Cost (TC) : Rs.410 ,Output (O) ; - 3 , Total Cost (TC) : Rs.480 ,Output (O) ; - 4 , Total Cost (TC) : Rs.540 ,Output (O) ; - 5 , Total Cost (TC) : Rs.610 ,Output (O) ; - 6 , Total Cost (TC) : Rs.690 ,Diminishing marginal returns starts to occur between units Show Answer

Q29) Marginal cost is defined as : Show Answer

Q30) Which of the following is true of the relationship between the marginal cost function & the average cost functions ? Show Answer

Q31) Which of the following statements is true of the relationship among the average cost functions ? Show Answer

Q32) Which of the following is not a determinant of the firm's cost functions ? Show Answer

Q33) Which of the following statements is correct concerning the relationships among the firm's function ? Show Answer

Q34) Suppose output increases in the short run .Total cost will Show Answer

Q35) Which of the following statements concerning the long-run average cost curve is false ? Show Answer

Q36) The negatively-sloped (i.e. falling) part of the long -run average total cost curve is due to which of the following Show Answer

Q37) The positively-sloped (i.e. raising) part of the long -run average total cost curve is due to which of the following Show Answer

Q38) A firm's average total cost is Rs.300 at 5 units of output & Rs.320 at 6 units of output .The marginal cost of producing the 6th unit is Show Answer

Q39) A firm producing 7 units of output has been an average total cost of Rs.150 & has to pay Rs.350 to its fixed factors of production whether it produces or not.How much of the average total cost is made up of variable cost ? Show Answer

Q40) A firm's variable cost is Rs.1,000 at 5 units of output .If the fixed cost are Rs.400 .What will be the average total cost at 6 units of output . Show Answer

Q41) A firm's average cost is Rs.20 at 6 units of output .What will be the cost at 4 units of output . Show Answer

Q42) Which of the following is true ? Show Answer

Q43) Which of the following is a function of an entrepreneur ? Show Answer

Q44) In describing a given problem technology,the short run is best described as lasting Show Answer

Q45) If decreasing returns to scale are present ,then if all inputs are increased by 10 % then Show Answer

Q46) The production function is a relationship between a given combination of inputs & Show Answer

Q47) If the marginal product of labour is below the average product of labour ,it must be true that: Show Answer

Q48) The average product of labour is maximized when marginal product of labour Show Answer

Q49) The law of variable proportions is drawn under all of the assumptions mentioned below except the assumptions that Show Answer

Q50) If the labour is an active factor ,land is Show Answer

Q51) Which of the following is production in economics ? Show Answer

Q52) Which is not a feature of labour ? Show Answer

Q53) Individual supply curve of labour is Show Answer

Q54) Income effect when wages rises means Show Answer

Q55) Which capital includes education , training & skill of the workers ? Show Answer

Q56) Which capital includes durable consumer goods , inventories & intermediate goods ? Show Answer

Q57) Surplus of production over consumption in an accounting year is called Show Answer

Q58) The other names for capital formation is Show Answer

Q59) The second stage of capital formation is Show Answer

Q60) Individual saving levels depends upon Show Answer

Q61) Corporate saving depends upon Show Answer

Q62) For mobilising savings ,we require Show Answer

Q63) Name of the factor of production which hires & organise the production activity Show Answer

Q64) When inputs are transformed into output ,it is called Show Answer

Q65) Technically efficient combinations of inputs is those which Show Answer

Q66) A long-run production function is one in which Show Answer

Q67) Product per unit of labour employed is called Show Answer

Q68) Addition made to 'TP' when one more unit of labour is employed is called Show Answer

Q69) When TP is maximum ,MP is Show Answer

Q70) When AP is maximum ,MP is equal to Show Answer

Q71) When TP is falling, MP is Show Answer

Q72) Reasons for rise in both AP & MP curves is Show Answer

Q73) The shape of both AP & MP curve is Show Answer

Q74) A rational producer will always operate in which stage of law of variable proportion ? Show Answer

Q75) The third stage of law of variable proportion is called Show Answer

Q76) First stage of law of variable proportion ranges from origin till the point where Show Answer

Q77) In the stage of diminishing returns,both AP & MP are falling & Show Answer

Q78) Decreasing return to scale is a stage of Show Answer

Q79) When the increase in output is less than in proportion to increase in inputs , it is called Show Answer

Q80) When labour & capital are increased by 10% & also increases by 10% then we have Show Answer

Q81) The reasons behind increasing returns to scale are Show Answer

Q82) When large firm takes up advertising & grants margin to distribution ,it is called Show Answer

Q83) When large firm diversifies output,market ,etc ,it is called Show Answer

Q84) When a large number of firms at one place gets advantages for which they made no efforts ,it is called Show Answer

Q85) When firm grows so large that it becomes very difficult to manage,it is called Show Answer

Q86) When a person smokes in a non-smoking zone , he causes disutility to other,it is an example of Show Answer

Q87) If a firm takes up too much money on loan & finds it is difficult to repay ,it is a case of Show Answer

Q88) When a manager is over burdened & faces the problems of control & coordination , it is case of Show Answer

Q89) When there is De-centralization of decision making it is case of Show Answer

Q90) When bigger & updated machines are installed then cost falls .what kind of returns to scales takes place ? Show Answer

Q91) The cost which is never zero even when production is shaped is called Show Answer

Q92) The cost which are prime cost & can be changed with changes in the level of output are called Show Answer

Q93) Explicit cash payments made by an entrepreneur to the suppliers of various factors of production Show Answer

Q94) TC is given as Show Answer

Q95) shape of TFC is Show Answer

Q96) The shape of TC curve is Show Answer

Q97) The reasons behind the slope of TC & TVC curve is Show Answer

Q98) AC is obtained by dividing TC by the level of Show Answer

Q99) Addition made to total cost due to change in output by one more unit is called Show Answer

Q100) When AC is falling MC is Show Answer

Q101) When AC is rising MC is Show Answer

Q102) When AC is minimum MC is Show Answer

Q103) Minimum point AC occurs to the right of minimum point of Show Answer

Q104) MC curve passes through minimum point of both AC & Show Answer

Q105) Falling portion of long-run AC curves is due to Show Answer

Q106) LAC curve 'envelopes' Show Answer

Q107) The minimum point of long run AC curve is due to Show Answer

Q108) Which cost curve is called planning curve ? Show Answer

Q109) In a U-shaped long run AC curve there is no extra capacity to meet seasonal variation in demand. It is called ? Show Answer

Q110) Each point on long run AC curve is a point of tangency with the corresponding Show Answer

Q111) AVC can be calculated by the formulae Show Answer

Q112) AFC can be calculated by the formulae Show Answer

Q113) The term production in economics means- Show Answer

Q114) Which of the following is considered production in economics? Show Answer

Q115) Making use of personal skill of doctors lawyers, actors, etc. results in the creation of- Show Answer

Q116) Making available materials at times when they are normally not available is called conferring of utility of- Show Answer

Q117) Which of the following statements incorrect? Show Answer

Q118) Economic utilities may be created or added Show Answer

Q119) Which of the following is not a feature of land Show Answer

Q120) The factor of production which has no reserve price is- Show Answer

Q121) Which of the following can be considered as labour in economics- Show Answer

Q122) . The supply of land is- Show Answer

Q123) Land in economics means- Show Answer

Q124) Labour is- Show Answer

Q125) Which factor loses its value of it cannot find a purchaser today- Show Answer

Q126) Supply curve of labour is- Show Answer

Q127) Income effect when wage rises means Show Answer

Q128) Which of the following statements is not true? Show Answer

Q129) Tools, machines, etc. are included in- Show Answer

Q130) The capital which belongs to the society as a whole is called- Show Answer

Q131) Raw material is an example of- Show Answer

Q132) Which capital includes education, training, skill, ability? Show Answer

Q133) Goodwill, patent rights, etc. are examples of- Show Answer

Q134) Which of the following statements is true? Show Answer

Q135) Surplus of production over consumption in an economy in a year is called- Show Answer

Q136) The third stage of capital formation is- Show Answer

Q137) With an increase in income Show Answer

Q138) A _____ country has greater ability to save. Show Answer

Q139) An individual’s saving level depends upon- Show Answer

Q140) The factor which mobilize land, labour and capital; combines them in the right proportion and then organizes the production activity is - Show Answer

Q141) The reward of all factors of production is usually predetermined (pre-fixed) except- Show Answer

Q142) The reward of an entrepreneur for his efforts and risk-taking is- Show Answer

Q143) The reward of capital is- Show Answer

Q144) The reward of an entrepreneur i.e. profit is - Show Answer

Q145) The risks which can be anticipated and can be insured against ?ire called- Show Answer

Q146) The risks like change in demand for a commodity, the cost structure, fashion, technological, etc. which an entrepreneur has to bear are called- Show Answer

Q147) According to _____ innovations introduced by an entrepreneur give rise to profits. Show Answer

Q148) Which of the following statement is incorrect? Show Answer

Q149) Labour is _____ Show Answer

Q150) Leather in a shoe factory is _____ Show Answer

Q151) ._____ Cannot be stored. Show Answer

Q152) Capital that can be used for several purposes or by several industries is _____ Show Answer

Q153) Addition to the stock of capital goods in a country means _____ Show Answer

Q154) Find the odd out _____ Show Answer

Q155) Consider the following groups of items:
(i) Factory buildings
(ii) Plant and Machinery
(iii) Stocks of raw materials (iv) Wagebills
Which of these are known as working capital? (a) i and ii (b) iii and iv
Show Answer

Q156) The production function means relationship between Show Answer

Q157) A production function is an expression of _____ relation between inputs and outputs. Show Answer

Q158) A short run production function is one in which- Show Answer

Q159) In the short period there is no change in _____factors. Show Answer

Q160) In the _____ period all factors are variable. Show Answer

Q161) In its original for Cobb-Douglas production function applies to- Show Answer

Q162) Cobb-Dauglas production function revealed that the increase in the manufacturing production was contributed by labour and capital respectively by- Show Answer

Q163) Cobb-Douglas production- Show Answer

Q164) Cobb-Douglas production function exhibits_____ returns to scale. Show Answer

Q165) The main difference between the short period/ run and the long period/run is that Show Answer

Q166) The law of variable proportions is a law of production which takes place in the- Show Answer

Q167) All but one are the assumptions of the law of variable proportions. Which one is not? Show Answer

Q168) When there is a fixed factor and a variable factor, then the law would be- Show Answer

Q169) The total quantity of goods and services produced by a firm with the given inputs during a specified period of time is called- Show Answer

Q170) The amount of output produced per unit of variable factor employed is called- Show Answer

Q171) The change in TP resulting from the employment of an additional unit of a variable factor is called- Show Answer

Q172) The average product of a variable input can be described as- Show Answer

Q173) Initially TP curve increases at an- Show Answer

Q174) As more units of variable factor is employed it will- Show Answer

Q175) As long as TP is positive, AP is- Show Answer

Q176) AP curve is- Show Answer

Q177) MP curve is the slope of _____ at each point. Show Answer

Q178) When TP is maximum, MP is - Show Answer

Q179) When TP is falling, MP is - Show Answer

Q180) MP curve is - Show Answer

Q181) When TP is maximum, the slope of TP curve is - Show Answer

Q182) TP is the area under the- Show Answer

Q183) . MP is positive so long as TP is- Show Answer

Q184) When TP is rising- Show Answer

Q185) When MP is negative- Show Answer

Q186) When MP is at a maximum- Show Answer

Q187) If MP goes on increasing, it should be understood that law of _____ is applying. Show Answer

Q188) If MP goes on decreasing it should be understood that law of _____ is in operation. Show Answer

Q189) When MP is falling, TP will increase Show Answer

Q190) When average product is maximum, marginal product is equal to- Show Answer

Q191) MP curve cuts AP curve from- Show Answer

Q192) The marginal product is maximum at the _____. Show Answer

Q193) The stage of production where the marginal product is greater than the average product is-. Show Answer

Q194) Which of the following statements reveal the diminishing returns? Show Answer

Q195) The MP curve is above the AP curve when the average product- Show Answer

Q196) The actual stage of production under the law of variable proportions is- Show Answer

Q197) Reason for fall in both AP and MP curves is- Show Answer

Q198) When AP and MP curves are falling, MP curve falls- Show Answer

Q199) When AP and MP curves are rising, AP curve _____. Show Answer

Q200) The reason for increasing returns to factor is- Show Answer

Q201) When the ideal factor ratio is violated in short run- Show Answer

Q202) AP increases so long as- Show Answer

Q203) AP may continue to _____ even when MP starts declining. Show Answer

Q204) MP curve cuts AP curve from its top, this means- Show Answer

Q205) Increasing MP implies TP is increasing at- Show Answer

Q206) MP of labour becoming negative implies- Show Answer

Q207) TP starts declining only when- Show Answer

Q208) . MP of the variable factor may be zero or negative, but AP continue to be- Show Answer

Q209) AP decreases when- Show Answer

Q210) In the above equations the fixed factor is- Show Answer

Q211) The MP of variable factor is- Show Answer

Q212) In the equation (i) the AP of the variable factor is- Show Answer

Q213) The total product when 5 units of labour are employed is- Show Answer

Q214) The average product of 3rd unit of labour is- Show Answer

Q215) The total product of 3 units of labour is- Show Answer

Q216) The marginal product of 5th unit of labour is- Show Answer

Q217) What is the total product when 2 hours of labour are employed? Show Answer

Q218) What is the average product of the first 2 hours of labour? Show Answer

Q219) What is the marginal product of the 3rd hour of labour? Show Answer

Q220) Find the odd one out- Show Answer

Q221) Diminishing marginal returns for the first four doses of inputs when all factors of production are increased in the same proportion is revealed by the total product sequence Show Answer

Q222) The behaviour of output in response to a change in the scale is studied in the-
Show Answer

Q223) In the theory of production the long runs is defined as the period of time in which- Show Answer

Q224) If all inputs are increased in the same proportion, then it is a case of-
(i) Short run production function
(ii) Long run production function (Hi) Laws of Variable Proportions
(iv) Laws of Returns to Scale
Show Answer

Q225) In the long run- Show Answer

Q226) Law of increasing returns to scale will apply if- Show Answer

Q227) Internal economies accrue when- Show Answer

Q228) External economies accrue when- Show Answer

Q229) If we have constant returns to scale and we increase both labour and capital by 10% output will also increase by- Show Answer

Q230) Find the odd one out- Show Answer

Q231) Economies of scale means- Show Answer

Q232) Linear Homogeneous Production Function is- Show Answer

Q233) Internal economies relate to Show Answer

Q234) In which of the following cases there is less than proportionate increase in output when all factors are increase- Show Answer

Q235) Problems like difficulties in management, lack of supervision, higher input cost, etc. due to large scale production leads to- Show Answer

Q236) Benefits like improved organization, division of labour and specialization, better supervision and control, etc. enjoyed by a firm when it expands production leads to- Show Answer

Q237) ._____ economies are common to all the firms in an industry and shared by many firms or industries. Show Answer

Q238) . _____ economies are related to an individual firm’s own cost reduction effort. Show Answer

Q239) _____ means all those factors which raise the cost of production per unit when production is expanded by a firm beyond optimal capacity. Show Answer

Q240) Economies of localization, cheaper inputs, growth of ancillary industries, etc. are examples of- Show Answer

Q241) . _____ economies can be of long term in nature Show Answer

Q242) _____ shows all the input combinations that will produce the same level of output Show Answer

Q243) Isoquant is also called as _____ Show Answer

Q244) . All of the following are the properties of isoquant except- Show Answer

Q245) . An isoquant slopes- Show Answer

Q246) In the context of input-output relation _____ means same output produced from different combinations of inputs. Show Answer

Q247) A higher isoquants denotes a - Show Answer

Q248) An isoquant is _____ indifference curve Show Answer

Q249) The rate of which one factor of production can be substituted for the other is known as- Show Answer

Q250) The slope is iso-product curve show- Show Answer

Q251) An isoquant is- Show Answer

Q252) Convexity of an isoquant implies _____ slope. Show Answer

Q253) A right-angled isoquant denotes that the _____ Show Answer

Q254) The MRTSxv is constant if two factors are _____ of each other Show Answer

Q255) Which of the following isoquant indicates that the two factors 'X' and 'Y' are imperfect substitutes of each other? Show Answer

Q256) Convexity of an isoquant denotes that the two factors are _____ of each other. Show Answer

Q257) In order to increase output, if both inputs must be increased in fixed proportion, it follows that both the inputs are _____ of each other. Show Answer

Q258) _____ is the locus of various combinations of two inputs which a producer can buy with the given outlay and the prices of two inputs. Show Answer

Q259) Isocost line is also known as _____ Show Answer

Q260) If the expenditure to be done on purchase of factors increases, the prices of both inputs remaining the same, the firm's isocost line will - Show Answer

Q261) The slope of the isocost line can change when the outlay remains the same but the price of - Show Answer

Q262) The iso-cost line in production optimization is _____ Show Answer

Q263) The slope of isocost line with factor 'Y' on the vertical axis and factor 'X' on the horizontal axis is - Show Answer

Q264) At equilibrium point, a particular isoquant is _____ to isocost line Show Answer

Q265) Where the slope of isoquant = the slope of isocost line, it is the _____ combination of inputs. Show Answer

Q266) Where the isocost line is tangent to an isoquant- Show Answer

Q267) All but one of the following statements are correct. Find the incorrect statement. Show Answer

Q268) If there is perfect substitution between two factors of production the shape of isoquant is- Show Answer

Q269) Condition for the producer’s equilibrium is- Show Answer

Q270) . Technically efficient combinations of inputs is those which- Show Answer

Q271) Internal economies and diseconomies of scale occur due maximizes to _____ causes.
(i) endogenous (ii) exogenous
(iii) internal (iv) external
Show Answer

Q272) External economies and diseconomies of scale occur due to _____ Show Answer

Q273) When a large firm takes up advertising and grants higher margin to retailers, it is called- Show Answer

Q274) . When a firm's dependence on external sources of funds increase and it finds difficulty to repay, it is a case of - Show Answer

Q275) A firm can hire additional labour (a) Rs. 50 per hour. By hiring 10 more hours of labour output will increase by 3 units. If per unit sells for Rs. 200, should the firm hire the labour? Why? Show Answer

Q276) Suppose that we are producing holes. The only way to get a hole is to use one man and one shovel. What shall be the shape of isoquants? Show Answer

Q277) You are doing homework. The inputs needed to produce homework is blue ink pen or black ink pen. What shall be the shape of isoquants? Show Answer

Q278) . When 5 units of variable factor are combined with 5 units of fixed factor and MP remains constant at 10 units. Find TP Show Answer

Q279) The production function of a firm is-
Q = 5L ½K ½
What would be the maximum possible output the firm can produce with 100 units of L and 100 units of K. Show Answer

Q280) . What will be the output with 10 units of L and 10 units of K, if the production function is Q = 5L + 2K production Show Answer

Q281) Cost analysis refer to the study of _____ in relation to different production criteria. Show Answer

Q282) Cost is a _____ function Show Answer

Q283) . Theory of costs is restatement of the theory of _____ in monetary terms Show Answer

Q284) . _____ costs relate to those costs which involve cash payments by the entrepreneur of the firm. Show Answer

Q285) Accounting costs are also called _____ costs. Show Answer

Q286) . Wages paid to labourers, cost of raw-materials purchase, interest on the money borrowed, etc. are examples of _____ cost.
(i) accounting (ii) implicit
(iii) economic (iv) explicit
Show Answer

Q287) Economic costs includes- Show Answer

Q288) Economic costs equals- Show Answer

Q289) ._____ costs are the value of foregone opportunities that do not involve any contractual obligation of cash payment. Show Answer

Q290) _____ includes all payments made to factors of production and opportunity cost. Show Answer

Q291) An entrepreneur must recover his _____ cost if he wants to earn normal and abnormal profits. Show Answer

Q292) Which of the following are implicit costs?
(i) A shop taken on rent by entrepreneur
(ii) Savings invested to start business
(iii) An individual is both owner and manager of business
(iv) A farmer takes a farm on rent
Show Answer

Q293) Which of the following are explicit costs?
(i) A producer borrows money to start a factory
(ii) A producer invests his savings to start a factory
(iii) Wages paid to workers
(iv) An individual is both owner & manager of business
Show Answer

Q294) The difference between Economic Cost and
Accounting Cost is equal to Show Answer

Q295) 200. All but one is not included in the books of account? Which one? Show Answer

Q296) _____ costs involve actual expenditure of funds on wages, material, rent, etc. Show Answer

Q297) . The cost that a firm incurs in purchasing or hiring, the services of various productive factors is referred to as- Show Answer

Q298) Explicit costs are also known as- Show Answer

Q299) For an economist, the cost means Show Answer

Q300) Implicit costs are also known an- Show Answer

Q301) Opportunity cost refers to- Show Answer

Q302) Opportunity cost refers to- Show Answer

Q303) Opportunity costs find its application in situations _____ Show Answer

Q304) Opportunity costs are a result of _____ Show Answer

Q305) All but one are true about opportunity cost. Which one is not true? Show Answer

Q306) If no sacrifice is involved, then the opportunity cost is _____ Show Answer

Q307) The concept of opportunity cost helps us to know that- Show Answer

Q308) If you give up a full-time job to go to college, the major cost is - Show Answer

Q309) If a firm’s machinery, has no possible alternative use, its opportunity cost is - Show Answer

Q310) If you own a cottage in Shimla which you could ent for August and September to some family for a net gain of Rs. 20,000/- after all expenses and taxes, the opportunity cost of living in it yourself for summer is _____ Show Answer

Q311) Cost of getting something involves losing something else means -
(i) accounting costs (ii) opportunity costs
(iii) explicit costs (iv) implicit costs
Show Answer

Q312) The costs which can be identified easily and indisputably with a unit of operation, a product, a department, a plant or a process are called-
(i) direct cost
(ii) indirect cost
(iii) traceable cost (iv) non-traceable cost
Show Answer

Q313) ._____ costs are not identified readily and indisputably to specific product, process, department, plant, operations, etc. Show Answer

Q314) Accounting process recognizes- Show Answer

Q315) The function which gives least cost combinations of inputs corresponding to different levels of output is called- Show Answer

Q316) Cost functions are derived from _____ Show Answer

Q317) ._____refers to the functional relationship between cost of a product and the various determinants of cost. Show Answer

Q318) In a cost function, the total cost or cost per unit is a/an _____ Show Answer

Q319) In a cost function, the prices of factors of production is a/an _____ Show Answer

Q320) Which one of the following is the dependent variable in a cost function? Show Answer

Q321) Which one of the following is an independent variable in a cost function? Show Answer

Q322) All but one are independent variables. Which one is not independent variable? Show Answer

Q323) The functional relationship between output and the long-run cost of production is called _____ Show Answer

Q324) Law of Returns to Scale forms the basis of _____ cost function Show Answer

Q325) A cost function determines the behaviour of cost with change in _____ Show Answer

Q326) Increase in the size of a firm and its production capacity determines _____ Show Answer

Q327) When a firm operates with a given scale of production it affects the _____ Show Answer

Q328) Find the odd one Show Answer

Q329) The costs which do not change with the level of output are called:
(i) Supplementary Costs.
(ii) Money Costs
(iii) Overhead Costs
(iv) Prime Cost
Show Answer

Q330) The costs which change with the level of output are called _____ Show Answer

Q331) The costs which remain constant at all the levels of output are called _____
(a) Supplementary Costs
Show Answer

Q332) Fixed costs includes- Show Answer

Q333) At zero level of output_____ cost can never be zero. Show Answer

Q334) At zero level of output _____ cost is zero. Show Answer

Q335) ._____ costs are incurred even before production starts Show Answer

Q336) ._____ costs are incurred after the production actually starts. Show Answer

Q337) At zero level of output Fixed Cost must be greater than Variable Cost. Show Answer

Q338) Fixed Costs are a function of _____ Show Answer

Q339) Variable Costs are a function of _____ Show Answer

Q340) _____ costs are directly or positively related to output. Show Answer

Q341) When production level is zero, then fixed cost is- Show Answer

Q342) Which of the following indicates fixed costs? Show Answer

Q343) Variable costs include costs of- Show Answer

Q344) Which one of the following is correct? Show Answer

Q345) Which cost increases continuously with the increase in production? Show Answer

Q346) When output is increased variable cost also rises initially at _____ rate and later at _____rate. Show Answer

Q347) The costs which are neither perfectly variable, nor absolutely fixed when output level are changed are _____ Show Answer

Q348) ._______ costs are independent of the level of output Show Answer

Q349) TVC can be calculated as- Show Answer

Q350) TC reflect the behaviour of- Show Answer

Q351) . At zero level of output Total Cost of Production is equal to- Show Answer

Q352) Total Fixed Cost Curve is indicated by a- Show Answer

Q353) Total cost curve shoots from a point on Y-axis means- Show Answer

Q354) Total Variable Cost initially rises at a diminishing rate due to- Show Answer

Q355) Total Variable Cost curve shoots upwards from- Show Answer

Q356) TFC curve will be a straight line - Show Answer

Q357) Total Variable Cost curve originate from the point of origin means- Show Answer

Q358) The total cost curve and total variable cost curve are parallel because- Show Answer

Q359) The vertical distance between TVC and TC is equal to - Show Answer

Q360) The fixed cost per unit of output is called- Show Answer

Q361) In the short run, when output of a firm increases, its average fixed cost- Show Answer

Q362) Average Fixed Cost curve _____ Show Answer

Q363) Total Variable Curve is _____ shaped Show Answer

Q364) Average Fixed Cost curve is indicated by- Show Answer

Q365) Average Fixed Cost curve will never touch- Show Answer

Q366) Average Variable Cost equals- Show Answer

Q367) Which of the following falls continuously? Show Answer

Q368) Average Variable Cost falls as output is expanded- Show Answer

Q369) Beyond normal capacity output, as output increases AVC will- Show Answer

Q370) Average variable cost is inversely related to Show Answer

Q371) AVC falls as output increases up to normal capacity due to- Show Answer

Q372) AVC curve is- Show Answer

Q373) ._____ and _____ curves start from the same point on Y-axis which is above the origin. Show Answer

Q374) Two curves which are inverted 'S' shaped are - Show Answer

Q375) Average Cost curve is- Show Answer

Q376) When output is increased Average Cost at all the levels of output includes both AVC and AFC means that- Show Answer

Q377) The vertical gap between AC and AVC curves as the output increases. Show Answer

Q378) Since AFC can never be zero,_____ and _____ curves never intersect each other Show Answer

Q379) The two inverted 'S’ shaped short run cost curves are parallel to each other and maintain a constant distance of Rs. 100. Which cost is indicated by Rs. 100? Show Answer

Q380) Find the odd one out- Show Answer

Q381) Average Fixed Cost falls as the output rises because- Show Answer

Q382) Production at the loss of _____ may continue in short run. Show Answer

Q383) Production at the loss of _____ cannot be continued in short run. Show Answer

Q384) Which of the following statements is correct of the relationship among the short run costs? Show Answer

Q385) Average Total Cost equals- Show Answer

Q386) . Average Total Cost means- Show Answer

Q387) Average Cost curve contains in it- Show Answer

Q388) Average Cost curve is a _____ Show Answer

Q389) When expressed as an average, it shows a continuous fall with increase in output- Show Answer

Q390) Marginal Cost varies inversely with _____,in short run Show Answer

Q391) Marginal Curve is _____ Show Answer

Q392) At the minimum average cost, a firm can produce the _____ Show Answer

Q393) Any change in Marginal Cost will lead to a change in firm’s _____ Show Answer

Q394) With increase in output, the average fixed cost will fall in _____ Show Answer

Q395) Marginal Cost is the slope of _____ curve. Show Answer

Q396) When total variable cost rises at a diminishing rate, marginal cost _____ Show Answer

Q397) When TVC rises at an increasing rate, MC _____ Show Answer

Q398) Graphically, the area under the Marginal Cost curve is _____ Show Answer

Q399) Marginal Cost Curve cuts the Average Cost Curve at its _____ Show Answer

Q400) Marginal Cost is independent of _____ Show Answer

Q401) All but one are 'U' shaped Show Answer

Q402) Find the Odd One out of the following Show Answer

Q403) The point at which marginal cost equate average cost shows- Show Answer

Q404) Which of the following is incorrectly matched? Show Answer

Q405) If a table shows number of units produced and average cost of each unit, one can calculate- Show Answer

Q406) Consider the following statements and point the correct one- Show Answer

Q407) When AC is at its minimum, then- Show Answer

Q408) Per unit cost of a commodity is called- Show Answer

Q409) When MC curve cuts AC curve- Show Answer

Q410) What happens to Average Cost when MC > AC? Show Answer

Q411) Marginal cost includes- Show Answer

Q412) If the marginal cost of production is less than the average cost then- Show Answer

Q413) MC is greater than AC when production is in a state of _____ Show Answer

Q414) AC is greater than MC, so long as - Show Answer

Q415) MC = AC when - Show Answer

Q416) The distance between AC and AVC curves tends to at _____ higher level of output Show Answer

Q417) ATC and AVC curves tend to intersect at some level of output Show Answer

Q418) The difference between ATC and AVC: Show Answer

Q419) Can AC is fall, when M C is rising? Show Answer

Q420) When MC < AVC, _____ with increase in the output Show Answer

Q421) When MC becomes equal to AC and AVC, they _____ Show Answer

Q422) There will be productive efficiency when- Show Answer

Q423) Marginal Cost is _____ Show Answer

Q424) The slope of the TVC or total cost curve indicates the- Show Answer

Q425) Falling average cost means- Show Answer

Q426) Short run average costs eventually rise because of _____ Show Answer

Q427) Decreasing average costs for a firm, as it expands plant size and output- Show Answer

Q428) MC curve passes through the minimum point of _____ Show Answer

Q429) Which of the following statements about the relationship between marginal cost and average cost is correct? Show Answer

Q430) Salesmen's commission is an example of - Show Answer

Q431) The Long Run Average Curve shows the average cost of production when _____ in supply Show Answer

Q432) Which one of the following is called planning curve? Show Answer

Q433) Falling portion i.e. negatively sloped portion of the long run average cost curve is because of- Show Answer

Q434) Which one of the following is also known as PLANT CURVE? Show Answer

Q435) The LAC curve helps the firm to make choice about size of plant for producing a particular output at _____ Show Answer

Q436) Which of the following is correct regarding Long Run Average Cost curve?
(i) It shows least cost of producing each level of output
(ii) LAC curve is envelope of SAC curves
(iii) LAC is U-shaped
(iv) LAC curve is U-shaped due to economies and diseconomies
Show Answer

Q437) When the long run average cost curve is falling,it is tangent to _____ Show Answer

Q438) When LAC curve is______ , it will be tangent to rising portions of the SAC curves Show Answer

Q439) . When the LAC curve slopes upward, the firm is experiencing _____ Show Answer

Q440) Larger outputs can be economically produced i.e. at the lowest cost with the _____ Show Answer

Q441) The LAC is - Show Answer

Q442) In the long run, when a firm faces infinite SAC curves, the LAC curve will be- Show Answer

Q443) The LAC curve is flattened U-shaped because- Show Answer

Q444) Modern firms face _____ shaped LAC curves Show Answer

Q445) L-shaped LAC curve a range shows that all size of plant have the __________ Show Answer

Q446) In the short period the firm can control only the_____ cost and not the _____ cost and therefore must recover at least _____ cost Show Answer

Q447) In short run the producer can control only_____ cost Show Answer

Q448) In the long period _____ costs are under the control of the producer Show Answer

Q449) . In the above diagram curve numbers 1, 2 and 3are _____ respectively Show Answer

Q450) In the above diagram at OK level of output, the average cost equals- Show Answer

Q451) . In the diagram above at OK level of output, KL denotes- Show Answer

Q452) In the diagram above at OK level of output, KM denotes-



























Show Answer

Q453) In the diagram above at OK level of output, the vertical distance shaded between LN denotes- Show Answer

Q454) In the above diagram, on the right side curve 3 becomes closer to curve 2 means-
(i) component of AFC shrinks
(ii) component of AFC increases (iii) component of AVC increases (iv) component of AVC shrinks
Show Answer

Q455) In the above diagram on the right side curve 1 gets away from curve 3 means- Show Answer

Q456) Marginal Cost reflects change in either _____ or _____. Show Answer

Q457) The total variable cost of the 3rd unit is- Show Answer

Q458) The marginal cost of the 2nd unit is- Show Answer

Q459) The average cost of producing the 4th unit is- Show Answer

Q460) The total fixed cost at the 3rd unit of output is- Show Answer

Q461) The average fixed cost at the 4th unit of output is- Show Answer

Q462) The average variable cost at the 3rd unit of output is- Show Answer

Q463) The total variable cost of the 3rd unit is- Show Answer

Q464) The marginal cost of the 2nd unit of output is- Show Answer

Q465) The total cost of 4th units of output is- Show Answer

Q466) Total Cost of 4th unit is- Show Answer

Q467) . The Average Cost of 2nd unit is- Show Answer

Q468) The Marginal Cost of 3rd unit is- Show Answer

Q469) The Total Fixed Cost of the 5th unit is- Show Answer

Q470) The Average Fixed Cost of 2nd unit is- Show Answer

Q471) The Average Variable Cost of 3rd unit is- Show Answer

Q472) The Average Total Cost of 2nd unit is- Show Answer

Q473) The average cost is Rs. 40 and it is minimum when 8 units are produced. The marginal cost of producing 4 unit is- Show Answer

Q474) If the marginal cost of producing 1 unit of a commodity is Rs. 15 and that of producing 2 units is 10, which of the following is correct? Show Answer

Q475) The total cost at 10 units of output is Rs. 55. The fixed cost is Rs. 5. The average variable cost at 10 units of output is- Show Answer

Q476) The total cost of producing 5 units of a commodity is Rs. 20 and that of producing 4 units is Rs. 15, what will be the marginal cost? Show Answer

Q477) A firm produces 100 units of a commodity. Actual money expenditure incurred on producing this commodity is Rs. 1500. The owner supplies inputs worth Rs.500 for which he does not get any payment. The economic cost turned out to be Rs. 2,100. The difference is- Show Answer

Q478) What would be the economic cost considering the following-
Purchase of raw materials Rs. 200
Payment of wages and salaries Rs. 500
Payment of rent Rs. 50
Estimated value of owner’s services Rs. 300
Expected minimum profit Rs. 40
Estimated super normal profit Rs. 240
Show Answer

Q479) A firm is producing 20 units. At this level of output, ATC and AVC are equal to Rs.40 and Rs.37 respectively. What is the total fixed cost of the firm? Show Answer

Q480) The total cost of producing 9 units of output is Rs.85. If the ATC of producing 10 units is Rs.10, then what will be the marginal cost of producing the 10th unit? Show Answer

Q481) The AC of producing 5 units is Rs.6 and AC of producing 6 units is Rs.5. What is the MC of the 6th unit? Show Answer

Q482) The TC of a firm increased by Rs.450, when production increased from 12 units to 14 units. What is the MC of the firm? Show Answer

Q483) . Find the AC and AVC if entire output is sold at Rs. 60 per unit from the following:
Wage Bill Rs. 20,000
Raw-material Bill Rs. 60,000
Interest Rs. 6,000
Fuel consumption Rs. 10,000
Rent Rs. 4,000
Show Answer

Q484) . A firm's average fixed cost is Rs. 40 at 12 units of output. What will it be at 8 units of output Show Answer

Q485) . A firm producing 5 units of output has AC of Rs. 150 and it pays Rs. 200 to its fixed factors of production. What is the AVC? Show Answer

Q486) What is the Average Cost of producing 20 units if the Total Fixed Cost is Rs. 5,000 and AVC is Rs. 2? Show Answer

Q487) The ATC of producing 50 units is Rs. 250 and TFC is Rs. 1,000. What is the AFC of producing 100 units? Show Answer

Q488) . When a bus with a seating capacity of 50 passengers is carrying on 40 passengers. The cost of passenger ticket is Rs. 100. What would be the Marginal Cost of carrying one additional passenger? Show Answer

Q489) Electricity charges are increased for the commercial use from Rs. 3 per unit to Rs. 5 per unit. This would affect- Show Answer

Q490) The development of Special Economic Zone will- Show Answer

Q491) . If the total cost of production of Good 'X' is Rs. 1,25,000; out of it implicit cost is Rs. 35,000 and normal profit is Rs. 25,000. What will be the explicit cost of Good 'X? Show Answer

Q492) . When output increased from 40 units to 55 units, TC increased from Rs. 2,500 to Rs. 3,250. The MC is- Show Answer

Q493) The basic behavioural principle which apply to all market conditions - Show Answer

Q494) Railways is an example of - Show Answer

Q495) The characteristic of monopolistic competition which is compatible with monopoly is- Show Answer

Q496) Relationship between Input and Output is explained by Show Answer

Q497) In Economics,……… refers to any economic activity, which is directed towards satisfaction of human wants. Show Answer

Q498) In Economics, Production refers to any economic activity Show Answer

Q499) Which of the following statement is True? Production can be defined as Show Answer

Q500) In Economics, Production refers Show Answer

Q501) Production may be defined as an act of Show Answer

Q502) Production is a / an ……… activity. Show Answer

Q503) Production does not consist of which of the following activities? Show Answer

Q504) Production = Creation of Utility. This statement is Show Answer

Q505) Production = Satisfaction of Utility. This statement is Show Answer

Q506) Production refers to Show Answer

Q507) Production refers to Show Answer

Q508) Production is defined as Show Answer

Q509) Which of the following statements regarding Service Industry is true? Show Answer

Q510) Production refers to Show Answer

Q511) Production includes Show Answer

Q512) Which of the following is considered Production in Economics? Show Answer

Q513) Which of the following statements is true? Show Answer

Q514) Production of Cellphones by a Manufacturing Company is an example of Production Activity. This statement is Show Answer

Q515) Hawking of Fruits and Vegetables by a Street Vendor is an example of Production Activity. This statement is Show Answer

Q516) Work of a Professional (like Chartered Accountant) does not result in any tangible output. Hence, it is not a Production Activity in Economics. This statement is Show Answer

Q517) Which of these is a Production Activity? Show Answer

Q518) In Economics, Production Activity should involve Show Answer

Q519) Production Activity involves creation of Utility. Such Utility can be created as Show Answer

Q520) Production Activity involves creation of Utility. Such Utility can be created as Show Answer

Q521) In Production Activity, one of the ways of creating Utility is Show Answer

Q522) Which of these is not a method of creating Utility in Production? Show Answer

Q523) ……..Utility refers to physically changing the form of natural resources. Show Answer

Q524) ………Utility refers to changing the place of the resources, from place of lesser use to place of greater use. Show Answer

Q525) ……..Utility is created by making goods and services available at times when they are not normally available. Show Answer

Q526) ………Utility involves making use of personal skills in the form of services. Show Answer

Q527) Making Furniture from raw Wood is an example of creation of Show Answer

Q528) When Bangles and Ear-Rings are made from Gold, we refer to creation of Show Answer

Q529) Raw Material converted into Finished Product in the manufacturing process, refers to creation of Show Answer

Q530) If Apples from Kashmir are available for Sale in Chennai, it refers to creation of Show Answer

Q531) If Oranges from Nagpur are made available for Sale in a Department Store in Kolkata, it refers to creation of Show Answer

Q532) If Garments from Tirupur are available for Sale in a Store in USA, it refers to creation of Show Answer

Q533) Moving or distributing goods from places of production (Origin Centres) to Markets (destination centres) refers to creation of Show Answer

Q534) Extraction from coal, minerals, gold, etc. from Earth, refers to creation of Show Answer

Q535) Place Utility involves Changing the place of the resources, from the place where they are of ……. use, to another place where they are of …….. use. Show Answer

Q536) Storing harvested foodgrains for use till next harvest is an example of creation of Show Answer

Q537) Work of Professionals like Doctors, Chartered Accountants, etc. can be considered under Show Answer

Q538) To complete production, all four types of utilities, i.e. Form, Place, Time and Personal Utility, should be created. This statement is Show Answer

Q539) Productive Resources required to produce goods and / or services are called Show Answer

Q540) Factors of Production are Show Answer

Q541) Land is a ………. Factor of Production. Show Answer

Q542) Which of these is not a basic Factor of Production in Economics? Show Answer

Q543) Which of the following is a factor(s) of production? Show Answer

Q544) The demand for a Factor of Production is said to be a Derived Demand because Show Answer

Q545) The Incentive / Reward in respect of Land is called Show Answer

Q546) The Incentive / Reward in respect of Labour is called Show Answer

Q547) The Incentive / Reward in respect of Capital is called Show Answer

Q548) The Incentive / Reward in respect of Entrepreneurial Ability is called Show Answer

Q549) Land refers to Show Answer

Q550) Land refers to Show Answer

Q551) Gold Mines is an example of ……., as a Factor of Production. Show Answer

Q552) Reserves of Crude Oil is an example of …….., as a Factor of Production. Show Answer

Q553) Which of these is an example of Land as a Factor of Production? Show Answer

Q554) Which of these is included in "Land" as a Factor of Production? Show Answer

Q555) Anything available above the earth's surface is called "Land". This statement is Show Answer

Q556) As a Factor of Production, Land is Show Answer

Q557) As a Factor of Production, Land is Show Answer

Q558) As a Factor of Production, Land is Show Answer

Q559) As a Factor of Production, "Land" is a …….. means of Production. Show Answer

Q560) As a Factor of Production, the Supply of Land is ………..from the viewpoint of the entire economy Show Answer

Q561) As a Factor of Production, the Supply of Land is perfectly inelastic from the viewpoint of Show Answer

Q562) As a Factor of Production, the Elasticity of Supply of Land from the viewpoint of the entire economy is Show Answer

Q563) As a Factor of Production, the Supply of Land is ……….from the viewpoint of the entire economy. Show Answer

Q564) As a Factor of Production, the Supply of Land is relatively elastic from the viewpoint of - Show Answer

Q565) As a Factor of Production, Land is permanent. This means that Land - Show Answer

Q566) As a Factor of Production, Land has certain inherent properties, e.g. Fertility. These properties are - Show Answer

Q567) If Land is used for productive purposes, its fertility is reduced. Such fertility - Show Answer

Q568) As a Factor of Production, Land lacks mobility. Lack of mobility means Show Answer

Q569) As a Factor of Production, Land lacks mobility in the …….. sense. Show Answer

Q570) As a Factor of Production, Land is mobile across Show Answer

Q571) No two pieces of land are exactly alike in all respects. This statement is Show Answer

Q572) Land is a specific factor of production. Why? Show Answer

Q573) Which of the following is not a characteristic of Land? Show Answer

Q574) Which one of the following is not a characteristic of land Show Answer

Q575) ……..refers to mental or physical exertion directed to produce goods or services, and with a view to gain an economic reward. Show Answer

Q576) Activities done out of pleasure, love and affection, pastime, hobbies, etc. may be very useful in increasing human well-being, and hence constitute Labour. This statement is Show Answer

Q577) To have an economic significance, Labour must be done with Show Answer

Q578) Which of these constitute "Labour"? Show Answer

Q579) Services of a Maid Servant constitutes Labour, while Services of a Housewife does not. This statement is Show Answer

Q580) As a Factor of Production, "Labour" is a …….. means of Production. Show Answer

Q581) Which of these constitute a feature of "Labour", as a Factor of Production? Show Answer

Q582) "Labour", as a Factor of Production involves Show Answer

Q583) "Labour", as a Factor of Production involves Show Answer

Q584) "Labour", as a Factor of Production involves human efforts, with a view to gain Show Answer

Q585) As a Factor of Production, "Labour" is Show Answer

Q586) Which is not a characteristic of labour? Show Answer

Q587) As a Factor of Production, "Labour" is perishable. This means that Show Answer

Q588) As a Factor of Production, a day's "Labour" lost cannot be Show Answer

Q589) A Labourer cannot store his Labour, for use at a later time. This statement is Show Answer

Q590) As a Factor of Production, "Labour" is perishable. The consequence of this is Show Answer

Q591) Since there is no Reserve Price, Labour has Show Answer

Q592) The purpose of Labour Laws is primarily to Show Answer

Q593) Labour is inseparable from the Labourer himself. This statement is Show Answer

Q594) If a Worker terminates his employment with Company X, he Show Answer

Q595) Labour may be classified as Show Answer

Q596) Labour Power depends upon Show Answer

Q597) All Labour is not productive in the sense that all efforts are not sure to produce want-satisfying goods and services. This statement is Show Answer

Q598) Generally, Supply of Labour and Wage Rates are ……… related. Show Answer

Q599) Direct relationship between Wage Rates and Supply of Labour means that Show Answer

Q600) Generally, Supply of Labour and Wage Rates are directly related. However, at very high wage rates, there Is a paradox of reduction in labour. This paradox is attributed to Show Answer

Q601) Generally, Supply of Labour and Wage Rates are directly related. However, at very low wage rates, there is a paradox of excess supply of Labour. This paradox is attributed to Show Answer

Q602) 107. Supply of Labour and Wage Rates are directly related. This statement is Show Answer

Q603) Supply of Labour and Wage Rates are always directly related. This statement is Show Answer

Q604) Supply of Labour and Wage Rates may become inversely related at Show Answer

Q605) Which of the following statements is not true about Labour Economies? Show Answer

Q606) ……… is that part of wealth of an individual or community, which is used for further production of wealth, or which yields an income. Show Answer

Q607) As a Factor of Production, "Capital" can be used for Show Answer

Q608) All Capital is Wealth, but all Wealth is not Capital, This statement is Show Answer

Q609) All Wealth is Capital, but all Capital is not Wealth. This statement is Show Answer

Q610) If a Resource is lying idle, it will constitute Show Answer

Q611) If a Resource is being used for generating further revenue, it will constitute Show Answer

Q612) Which of these constitutes "Capital'? Show Answer

Q613) Which of these constitutes does not constitute "Capital"? Show Answer

Q614) As a Factor of Production, "Tools and Accessories" constitute Show Answer

Q615) As a Factor of Production, "Capital" is a ……… concept. Show Answer

Q616) Income arising out of "Capital" is a ……… concept Show Answer

Q617) As a Factor of Production, "Capital" is a ………. means of Production. Show Answer

Q618) "Capital" is considered as a "produced means of production". This statement is Show Answer

Q619) As a Factor of Production, "Capital" is Show Answer

Q620) As a Factor of Production, "Capital" is Show Answer

Q621) As a Factor of Production, Capital has relative mobility in the ……… sense. Show Answer

Q622) As a Factor of Production, Capital is mobile across Show Answer

Q623) As a Factor of Production, "Capital" is Show Answer

Q624) The process of increase in the stock of real capital in a country is called Show Answer

Q625) Capital Formation means Show Answer

Q626) Capital Formation is required for Show Answer

Q627) Capital Formation is required for Show Answer

Q628) For the purpose of Capital Formation Show Answer

Q629) If the whole of the current capacity is used to produce only Consumer Goods Show Answer

Q630) Larger production of …….. goods would lead to higher production in future. Show Answer

Q631) Lesser production of ………. would lead to lesser production in future Show Answer

Q632) A 100% Consumption Economy Show Answer

Q633) Capital Formation is possible by Show Answer

Q634) If current consumption is reduced for the purpose of Capital Formation, that represents a Show Answer

Q635) Capital Formation involves Show Answer

Q636) For the purpose of Capital Formation, which of the following create "Savings" in an economy? Show Answer

Q637) For the purpose of Capital Formation, which of the following create maximum "Savings" in an economy? Show Answer

Q638) Level of Savings depends upon Show Answer

Q639) Ability to Save depends upon Show Answer

Q640) If there is an increase in income levels, the propensity to consume Show Answer

Q641) If there is an increase in income levels, the ……… reduces. Show Answer

Q642) If there is an increase in income levels, the propensity to save Show Answer

Q643) If there is an increase in income levels, the ………. increases Show Answer

Q644) Higher the level of income, Higher is the level of Savings. This statement is Show Answer

Q645) Higher the level of income, Higher is the level of Savings. This statement is true in respect of Show Answer

Q646) A …….. country has greater ability to save than a ……… country Show Answer

Q647) Willingness to Save depends upon Show Answer

Q648) If Willingness to Save is higher, the level of …….. will be higher. Show Answer

Q649) If Willingness to Save is less, the level of ……… will be higher. Show Answer

Q650) ………. save by reducing their present consumption. Show Answer

Q651) …………. save by way of Retained Earnings, i.e. Undistributed Profits. Show Answer

Q652) Which of these is a source of savings for Government? Show Answer

Q653) Which of these play a role in mobilisation of savings in an economy? Show Answer

Q654) Real Capital Formation requires Show Answer

Q655) Inducement to Invest is influenced by Show Answer

Q656) Prospective Rate of Profit is also called Show Answer

Q657) Scheme of Subsidies for setting up industries in backward regions leads to Show Answer

Q658) ………. is the person who combines the various factors of production in the right proportions, initiates the process of production and bears the risk involved in it. Show Answer

Q659) The most important function of an entrepreneur is to ______. Show Answer

Q660) Entrepreneur is also called as Show Answer

Q661) Entrepreneurship is a wider term than organization and management of a business. This statement is Show Answer

Q662) Entrepreneur Show Answer

Q663) Entrepreneurship gets its reward (i.e. Profit), only after all other factors of production have been rewarded. This statement is Show Answer

Q664) The reward / incentive / remuneration for Entrepreneurship is a ……… amount. Show Answer

Q665) Enterpreneur holds the final responsibility of the business. This statement is Show Answer

Q666) The functions of an Entrepreneur include Show Answer

Q667) Innovation theory of entrepreneur is propounded by Show Answer

Q668) Which of the following constitute Innovation? Show Answer

Q669) Which of the following constitute Innovation? Show Answer

Q670) Organic Objectives of Enterprises Show Answer

Q671) Profit Making is a Show Answer

Q672) Accounting Profits is also called Show Answer

Q673) Economic Profit is also called Show Answer

Q674) 1The difference between Economist's Profit and Accountant's Profit is Show Answer

Q675) To enable Employees enjoy a good standard of living and maintain work-life balance, is a Show Answer

Q676) Which of the following is a National Objective of an enterprise Show Answer

Q677) To ensure that the Enterprise's output does not cause any type of pollution - air, water or noise, is a Show Answer

Q678) ……….. is the functional relationship between physical inputs (i.e. factors of production), and physical outputs (i.e. quantity of goods / services produced). Show Answer

Q679) Production Function deals with - Show Answer

Q680) ……….shows the output produced with a given amount of inputs. Show Answer

Q681) ………. shows the overall output generated at a given level of input. Show Answer

Q682) Production Function explains the relationship between - Show Answer

Q683) Production function is _______ Show Answer

Q684) In a Production Function, Input means - Show Answer

Q685) In a Production Function, Output means - Show Answer

Q686) Production Function states the relationship between inputs and output, keeping technology Show Answer

Q687) Production Function specifies the ……….. output that can be produced with given quantities of inputs, in the existing state of technology. Show Answer

Q688) Production Function specifies the ………. quantities of various inputs that are required to yield a given quantity of output. Show Answer

Q689) In a Cobb-Douglas production function, two inputs are Show Answer

Q690) 13. Linder Cobb- Douglas production function contribution of capital and labour respectively- Show Answer

Q691) Production Function specifies - Show Answer

Q692) Which of the following is the best definition of the "Production Function'? Show Answer

Q693) The Production Function is a relationship between a given combination of inputs and- Show Answer

Q694) In general, most of the Production Functions measure - Show Answer

Q695) A Firm's Production Function- Show Answer

Q696) Which of the following is/are an outcome of a technological change? Show Answer

Q697) Which of the following statements regarding Production Function is false? Show Answer

Q698) The time period(s) covered in Economics Study is / are - Show Answer

Q699) ……… is the period of time in which all but one factor of production are variable. Show Answer

Q700) In the short-run, ……….factor(s) of production is / are variable. Show Answer

Q701) Variable Factors means those Factors of Production Show Answer

Q702) There is only one Fixed Factor of Production in the short-run planning horizon. This statement is Show Answer

Q703) The difference between Fixed and Variable Factors of Production is relevant in Show Answer

Q704) In the short-run, ……… factors of production changes. Show Answer

Q705) In the short-run, the proportion between factors of production Show Answer

Q706) In the short-run, the proportion between factors of production changes because Show Answer

Q707) Law of ……… is applicable in the short-run. Show Answer

Q708) Law of Variable Proportions is applicable to Show Answer

Q709) Which of the following activities cannot take place in the short-run? Show Answer

Q710) In describing a given production technology, the short run is best described as lasting Show Answer

Q711) The short run, as economists use the phrase, is characterized by Show Answer

Q712) ………. is the period of time in which all the factors of production are variable. Show Answer

Q713) In the long-run, ……… factor(s) of production is /are variable. Show Answer

Q714) All Factors of Production become variable in Show Answer

Q715) There is no Fixed Factor of Production in the long- run planning horizon. This statement is Show Answer

Q716) The difference between Fixed and Variable Factors of Production arises only in Show Answer

Q717) In the long-run, …………factors of production changes. Show Answer

Q718) In the long-run, the quantity of factors of production Show Answer

Q719) In the long-run, the quantity of factors of production changes because Show Answer

Q720) Law of …………. is applicable in the long-run. Show Answer

Q721) Law of Returns to Scale is applicable to Show Answer

Q722) Which of the following statements regarding short run and long run is true? Show Answer

Q723) To economists, the main difference between the short run and the long run is that Show Answer

Q724) ……….is the improvement in the production techniques for existing production Show Answer

Q725) The introduction of new product with added features in the market is known as Show Answer

Q726) Which of the following statements regarding Product and Process Innovation is true? Show Answer

Q727) ……….. Innovation is of more importance as it helps in increasing the standard of living in the long run Show Answer

Q728) ………… is the total output resulting from the efforts of all the factors of production, combined together at any time. Show Answer

Q729) ………… is the Total Product per unit of the Variable Factor. Show Answer

Q730) ………..= Total Product -f Quantity of the Variable Factor. Show Answer

Q731) ………….is the change in Total Product, for one unit change in the quantity of Variable Factor. Show Answer

Q732) …………is the addition made to Total Product, by an additional unit of input of the Variable Factor. Show Answer

Q733) Marginal Product is Show Answer

Q734) The Marginal Product of an input is ………. Show Answer

Q735) The Marginal Product of a variable input is best described as Show Answer

Q736) If the inputs of all but one factor are held constant, then …….. will vary with the quantity used of the Variable Factor. Show Answer

Q737) If the inputs of all but one factor are held constant, then Total Factor will Show Answer

Q738) When 50 hours of Labour are spent, total output quantity is 2,000 units. When 55 hours of Labour are spent, total output quantity is 2,250 units. Here, Marginal Product will be Show Answer

Q739) Suppose the first four units of a variable input generate corresponding total outputs of 150, 200, 350 and 550. The marginal product of the third unit of input is: Show Answer

Q740) As quantity of the Variable Factor increases, Total Product (TP) Curve - Show Answer

Q741) If Total Product (TP) increases, Marginal Product (MP) will be - Show Answer

Q742) If Total Product (TP) increases at an increasing rate, Marginal Product (MP) will be - Show Answer

Q743) If Total Product (TP) increases at a decreasing rate Marginal Product (MP) will be - Show Answer

Q744) If Total Product (TP) is maximum, Marginal Product (MP) will be - Show Answer

Q745) What is the maximum point of TP? Show Answer

Q746) If TP decreases, MP will be - Show Answer

Q747) Marginal Product (MP) Curve - Show Answer

Q748) Average Product (AP) Curve - Show Answer

Q749) Marginal Product (MP) - Show Answer

Q750) If Marginal Product (MP) Curve is depicted on a graph with Quantity on X axis - Show Answer

Q751) Average Product (AP) - Show Answer

Q752) What Is the relationship between AP and MP? Show Answer

Q753) If Average Product (AP) Curve is depicted on a graph with Quantity on X axis - Show Answer

Q754) Which of the following is correct? Show Answer

Q755) The point where MP is maximum is called - Show Answer

Q756) At what point is the Marginal Product maximum? Show Answer

Q757) At the Point of Inflexion, the Marginal Product is - Show Answer

Q758) At the Point of Inflexion - Show Answer

Q759) At the Point of Inflexion, TP will generally - Show Answer

Q760) When AP rises as a result of an increase in the quantity of variable input - Show Answer

Q761) When Average Product (AP) rises as a result of an increase in the quantity of variable input - Show Answer

Q762) When Average Product (AP) decreases as a result of an increase in the quantity of variable input - Show Answer

Q763) When Average Product (AP) decreases as a result of an increase in the quantity of variable input- Show Answer

Q764) If the Marginal Product of Labour is below the Average Product of Labour, it must be true that Show Answer

Q765) When Average Product (AP) is at its maximum Show Answer

Q766) The Average Product of Labour is maximized when Marginal Product of Labour - Show Answer

Q767) Marginal Product (MP) Curve cuts Average Product (AP), when - Show Answer

Q768) When Marginal Product (MP) = Average Product (AP), it means that AP is - Show Answer

Q769) Marginal Product (MP) Curve cuts Average Product (AP) Curve - Show Answer

Q770) When is Average Product at its maximum? Show Answer

Q771) Marginal Product (MP) Curve cuts Average Product (AP) Curve - Show Answer

Q772) Marginal Product (MP) rises steeply, and also declines slightly earlier than Average Product (AP) Curve. This statement is - Show Answer

Q773) The Marginal, Average, and Total Product Curves encountered by the Firm producing in the short run exhibit all of the following relationships except - Show Answer

Q774) The Law of ……….. analyses the production function with one factor as variable, keeping quantities of other factors fixed. Show Answer

Q775) The Law of Variable Proportions analyses The ………. with one factor as variable, keeping quantities of other factors fixed. Show Answer

Q776) The Law of ……….deals with input-output relationship, when the output is increased by varying the quantity of one input. Show Answer

Q777) Which Law examines the production function keeping one factor variable? Show Answer

Q778) The Law of Variable Proportions operates in Show Answer

Q779) In the ………., all factors of production cannot be increased or decreased simultaneously. Show Answer

Q780) The Law of Variable Proportions is also called Show Answer

Q781) The Law of Variable Proportions deals with Show Answer

Q782) Which of the following is an assumption in the Law of Variable Proportions? Show Answer

Q783) Which of the following is an assumption in the Law of Variable Proportions? Show Answer

Q784) Assumption which are applicable under Law of Variable Proportion are Show Answer

Q785) Which of the following is not an assumption in the Law of Variable Proportions? Show Answer

Q786) Which of the following is not an assumption in the Law of Variable Proportions? Show Answer

Q787) Law of Variable Proportions is valid when Show Answer

Q788) The Law of Variable Proportions analyses the economic profitability of the Firm in monetary terms also. This statement is Show Answer

Q789) The Law of Variable Proportions assumes that factors of production Show Answer

Q790) In agriculture, the land area is taken as constant, while number of workers can be increased. If we apply the Law of Variable Proportions in this situation, it means that the Fixed Factor of Production is Show Answer

Q791) In agriculture, the land area is taken as constant, while number of workers can be increased. If we apply the Law of Variable Proportions in this situation, it means that the Variable Factor of Production is - Show Answer

Q792) In the production of wheat, all of the following are variable factors that are used by the farmer except - Show Answer

Q793) If all factors are required to be used in fixed proportions, then the Law of Variable Proportions - Show Answer

Q794) As per Law of Variable Proportions, as the quantity of one input which is combined with other fixed inputs is increased, the ……… of the Variable Input must eventually decline, Show Answer

Q795) The Law of Variable Proportions is drawn under all of the assumptions mentioned below except the assumption that - Show Answer

Q796) The Law of Variable Proportions come into being when- Show Answer

Q797) ……….. states that when Labour increases with capital being the same, the Marginal Productivity of Labour will increase at first but start decreasing later. Show Answer

Q798) When a Factory is working at 70% capacity, increasing of variable inputs, leads to- Show Answer

Q799) The order of stages in the Law of Variable Proportions are - Show Answer

Q800) Which of the following is not a stage in Law of Variable Proportions? Show Answer

Q801) The stage of Increasing Returns applies from ………. To ………. Show Answer

Q802) In the stage of Increasing Returns, Total Product (TP)- Show Answer

Q803) In the stage of Increasing Returns, Average Product (AP)- Show Answer

Q804) In the stage of Increasing Returns, Marginal Product (MP)- Show Answer

Q805) What result we get in the first stage of Law of Variable Proportions? Show Answer

Q806) Which of the following is true? Show Answer

Q807) A Firm is operating at an output level, where its Total Product is increasing at an increasing rate. This implies that the Firm's Show Answer

Q808) Why does the Law of Increasing Returns operate? Show Answer

Q809) Which of these is a reason for the operation of Law of Increasing Returns? Show Answer

Q810) Which of the following is the reason of the working of law of increasing returns? Show Answer

Q811) The stage of Diminishing Returns applies from ……… to ………. Show Answer

Q812) The Law of Diminishing Returns - Show Answer

Q813) In case of law of variable proportions, diminishing returns occur. Show Answer

Q814) In the stage of Diminishing Returns, Total Product (TP)- Show Answer

Q815) In the stage of Diminishing Returns, Average Product (AP)- Show Answer

Q816) In the stage of Diminishing Returns, Marginal Product (MP) - Show Answer

Q817) In the stage of Diminishing Returns - Show Answer

Q818) In the stage of Diminishing Returns - Show Answer

Q819) Which of the following statements show the Stage of Diminishing Returns under the Law of Variable Proportions? Show Answer

Q820) Which of the following is a reason for the operation of the Law of Diminishing Returns? Show Answer

Q821) As per the Law of Diminishing Returns, Fixed Factor becomes inadequate because - Show Answer

Q822) The "Law of Diminishing Returns" applies to- Show Answer

Q823) Diminishing Returns occur- Show Answer

Q824) Law of Diminishing Returns is not relevant when- Show Answer

Q825) In which stage of production are the Average Product and Marginal Product decreasing with the Marginal Product above zero (positive)? Show Answer

Q826) During the stage of Decreasing Returns - Show Answer

Q827) When the Law of Diminishing Returns operates Show Answer

Q828) When the Law of .Diminishing Returns sets in, then- Show Answer

Q829) Diminishing Marginal Returns implies - Show Answer

Q830) The Third Stage of Law of Variable Proportion is known as- Show Answer

Q831) The stage of Negative Marginal Returns applies from ………to ……… Show Answer

Q832) In the stage of Negative Marginal Returns, Total Product (TP) - Show Answer

Q833) In the stage of Negative Marginal Returns, Average Product (AP) - Show Answer

Q834) In the stage of Negative Marginal Returns, Marginal Product (MP) - Show Answer

Q835) Which of the following stages of production is known as stage of Negative Returns? Show Answer

Q836) The Law of Negative Marginal Returns operates because the Variable Factor is ……….. in relation to the Fixed Factor of Production. Show Answer

Q837) In which of the following situations, the Law of Variable Proportions will not apply? Show Answer

Q838) In which of the following situations, the Law of Variable Proportions will not apply? Show Answer

Q839) In which of the following situations, the Law of Variable Proportions will not apply? Show Answer

Q840) In case of ………, MP and AP may rise instead of falling. Show Answer

Q841) A Rational Producer will operate in - Show Answer

Q842) A Rational Producer will not operate in - Show Answer

Q843) Stages I and III are called - Show Answer

Q844) Stages I and III are called - Show Answer

Q845) A Rational Producer will not operate in Stage I due to the reason that - Show Answer

Q846) A Rational Producer will not operate in Stage III due to the reason that - Show Answer

Q847) A Rational Producer intends to work in- Show Answer

Q848) In which stage of production would a rational entrepreneur like to operate? Show Answer

Q849) The Law of Returns to Scale operates in - Show Answer

Q850) The concept 'Returns to scale' is related with ______ Show Answer

Q851) In the ………., the quantities of all factors of production can be increased or decreased simultaneously. Show Answer

Q852) Long-period production function is related to _______ Show Answer

Q853) The Law of Returns to Scale deals with - Show Answer

Q854) Under the Law of Returns to Scale, ……… is constant. Show Answer

Q855) Law of Returns to Scale indicates the responsiveness of total product when all inputs Show Answer

Q856) Returns to Scale will be said to be in operation when quantity of - Show Answer

Q857) Change in Scale means that all Factors of Production are increased or decreased - Show Answer

Q858) When there is an increase in all factors of production together in the same ratio , ………. - (a) increases at first, (b) becomes constant thereafter, and (c) starts decreasing beyond a certain level. Show Answer

Q859) In the initial stages, when there is an increase in scale, there is ……… increase in output. Show Answer

Q860) In the initial stages, there will be increasing returns to scale, due to - Show Answer

Q861) In the initial stages, there will be increasing returns to scale, due to - Show Answer

Q862) In the very beginning of production, generally the Increasing Returns to scale is found because- Show Answer

Q863) In a small scale rubber plant, factors of production like labour, material and capital are increased by 10% and output increases. It implies that the Firm is experiencing ………… Show Answer

Q864) Manufacturers can lower their costs by producing a variety of different products on the same equipment. The added volume helps in lowering average total costs; it may also allow the Firm to employ different types of equipment that have lower variable costs. These factors lead to - Show Answer

Q865) If as a result of 50% increase in all inputs, the output rises by 75%, this is a case of: Show Answer

Q866) After the initial stages of increasing returns to scale, the Firm will experience - Show Answer

Q867) In which of the following cases does output double with the doubling of all inputs? Show Answer

Q868) If a change in scale inputs leads to a proportional change in the output, it is a case of- Show Answer

Q869) If one unit of labour and one unit of capital give 200 units of output, two units of labour and two units of capital give 400 units of output and 5 units of labour and five units of capital give 1000 units of output then this is a case of: Show Answer

Q870) After the stages of constant returns to scale, the Firm will start experiencing - Show Answer

Q871) If Decreasing Returns to Scale are present, then if all inputs are increased by 10% then Show Answer

Q872) With a view to increase his production Hari Haran a manufacturer of shoes, increases all the factors of production in his unit by 100%. But at the end of year he finds that instead of an increase of 100%, his production has increased by only 80%. Which law of returns to scale is operating in this case _______. Show Answer

Q873) If all inputs are trebled and the resultant output is doubled, this is a case of: Show Answer

Q874) In electricity generation plants, when the plant grows too large risks of plant failure with regard to output increase disproportionately. Hence we are talking about which concept of returns to scale? Show Answer

Q875) Linear Homogeneous Production function is based on _______ Show Answer

Q876) Beyond a certain extent, the Firm will start experiencing decreasing returns to scale, due to Show Answer

Q877) Problems like managerial difficulties, low employee morale, higher input prices, etc. arising out of large scale operations lead to Show Answer

Q878) Diseconomies of Scale refer to Show Answer

Q879) Economies and Diseconomies in operations can be Show Answer

Q880) Internal Economies and Diseconomies are dependent on Show Answer

Q881) Internal Economies and Diseconomies arise due to Show Answer

Q882) External Economies and Diseconomies are dependent on Show Answer

Q883) External Economies and Diseconomies arise due to Show Answer

Q884) External economies can be achieved through Show Answer

Q885) External Diseconomies may lead to _______ Show Answer

Q886) Inventory Economies are a part of which of the following type of economies of scale? Show Answer

Q887) ………. economies result from the use of specialized equipment and modern techniques of production. Show Answer

Q888) Which of the following is an important ingredient of Selling Economies? Show Answer

Q889) ……….. economies are associated with the distribution of the product of a Firm. Show Answer

Q890) Which of the following is not a type of pecuniary Economies of Scale? Show Answer

Q891) Difficulties of management, co-ordination and control due to bigger Plant Size is an example of Show Answer

Q892) Availability of cheaper Raw Materials and Capital Equipment in the long-run constitutes Show Answer

Q893) Increase in Prices of Factors of Production due to expansion in industry creates Show Answer

Q894) Discovery of new technical knowledge and improvements in technology leads to Show Answer

Q895) Management Efficiency and Productivity due to creation of different specialised functional departments is an example of Show Answer

Q896) Growth of Ancillary Industries supplying related goods and services is an example of Show Answer

Q897) Delays in internal communication due to complex management structure is an example of Show Answer

Q898) A large Firm can offer better security to Bankers and obtain credit easily. This creates ……… for such Firm. Show Answer

Q899) When a large Firm makes bulk purchase and obtains its Raw Materials at lower prices than a small size Firm, the large Firm is said to have achieved Show Answer

Q900) Internal Economies of Scale can arise in ………. aspects. Show Answer

Q901) Internal and External Economies and Diseconomies of Scale has its impact on Show Answer

Q902) Due to External Economies of Scale, the Long Run Average Cost (LAC) Curve Show Answer

Q903) Due to External Diseconomies of Scale, the Long Run Average Cost (LAC) Curve Show Answer

Q904) If the LAC curve falls as output expands, this is due to Show Answer

Q905) Identify the correct statement Show Answer

Q906) The Economy achieves 'Productive Efficiency’ when: Show Answer

Q907) Cost Analysis is the study of behaviour of ……….., in relation to one or more production criteria. Show Answer

Q908) Cost Analysis is the study of behaviour of Cost, in relation to - Show Answer

Q909) For Cost Analysis purposes, the Production Criteria may be - Show Answer

Q910) For Cost Analysis purposes, the Production Criteria may be - Show Answer

Q911) Cost Analysis is concerned with ……… of production. Show Answer

Q912) Production Analysis is concerned with ……….of production. Show Answer

Q913) Cost Function refers to the mathematical relationship between cost of a product and the various determinants of Cost. This statement is Show Answer

Q914) A Cost Function deals with - Show Answer

Q915) In a Cost Function, the Total Cost or Cost per unit is a/an - Show Answer

Q916) In a Cost Function, the Output Quantity is a/an- Show Answer

Q917) In a Cost Function, the Scale of Operations is a/an- Show Answer

Q918) In a Cost Function, the Price of Factors of Production is a/an- Show Answer

Q919) Identify the Dependent Variable in a Cost Function from the following. Show Answer

Q920) Identify the Dependent Variable in a Cost Function from the following. Show Answer

Q921) Identify the Independent Variable in a Cost Function from the following. Show Answer

Q922) Cost Functions are Derived Functions. They are derived from - Show Answer

Q923) A Cost Function determines the behaviour of Costs with change in Show Answer

Q924) The Cost Function indicates the functional relationship between Total Cost and Show Answer

Q925) Which of the following is not a determinant of the Firm's Cost Function? Show Answer

Q926) The Functional Relationship between Output and the Long Run Cost of Production is known as Show Answer

Q927) The Functional Relationship between Output and the Short Run Cost of Production is known as Show Answer

Q928) Which of the following statements regarding the Long Run Cost Function is not true? Show Answer

Q929) Expansion of Scale of operation forms a part of ………. Cost Function. Show Answer

Q930) Which of the following statements regarding Short and Long Run Cost Functions is not true? Show Answer

Q931) Which theory proposes that a country could be better off by producing the product in which it has relatively lower Labour Cost and relatively higher Labour productivity? Show Answer

Q932) A Product can be produced using two input combinations A and B. Combination A takes 2 units of Labour and 8 units of Capital. Combination B takes 3 units of Labour and 5 units of Capital, what is the Marginal Rate of Technical Substitution of Labour for Capital? Show Answer

Q933) Costs which involve payment made by the Entrepreneur to providers of other factors of production are called Show Answer

Q934) The Cost that a Firm incurs in hiring or purchasing any Factor of Production is referred to as Show Answer

Q935) ………. can be defined as the Cost that involve actual payment to other parties. Show Answer

Q936) Which of the following is an example of an "Explicit Cost"? Show Answer

Q937) Explicit Costs are also known as Show Answer

Q938) Which of the following does not relate to Explicit Costs? Show Answer

Q939) ………. are actually incurred and hence can be easily and objectively measured. Show Answer

Q940) Which of the following Costs is included and recorded in the books of accounts? Show Answer

Q941) Explicit Costs are used for ……… purposes. Show Answer

Q942) Costs which do not involve any cash payment to outsiders are called - Show Answer

Q943) ………. are the value of foregone opportunities that do not involve any physical cash payment. Show Answer

Q944) An Implicit Cost can be defined as the- Show Answer

Q945) Which of the following is an example of an "Implicit Cost'? Show Answer

Q946) Implicit Costs are also known as Show Answer

Q947) Which of the following does not relate to Implicit Costs? Show Answer

Q948) ……….. involve subjective estimation. Show Answer

Q949) An entrepreneur who manages his Firm has to forego his salary, which he could have earned if he had worked elsewhere. The foregone Cost is known as Show Answer

Q950) Implicit Costs includes Show Answer

Q951) Which of the following is an Implicit Cost? Show Answer

Q952) Which of the following is an Implicit Cost? Show Answer

Q953) Which of the following Costs is not included in the books of accounts? Show Answer

Q954) Which of the following Costs does not include the contractual cash payments which the firm makes to other Factor Owners for purchasing or hiring various factors? Show Answer

Q955) Implicit Costs are used for ……….. purposes. Show Answer

Q956) If Rent is paid to the Landlord separately, it is an Show Answer

Q957) If Land is owned by the Entrepreneur, Rent is an Show Answer

Q958) Salary / Wages paid to Employees / Workers is an Show Answer

Q959) If own people (e.g. family members) are employed in the Firm, without paying them any reward for their work, Labour Cost is an Show Answer

Q960) If Capital is borrowed and used in the business, Interest on Capital is - Show Answer

Q961) If Entrepreneur employs his own funds as Capital, then Interest is Show Answer

Q962) When Entrepreneur himself manages the business, the reward for Entrepreneurial Ability (i.e. Profit) is an Show Answer

Q963) Reward for Entrepreneurial Ability (i.e. Normal Profit in the business) is included in Show Answer

Q964) Direct costs are ______ Show Answer

Q965) Suppose the total cost of production of a commodity X is ? 1,25,000 out of which implicit cost 35,000 and normal profit is 25,000. What would be the explicit cost of commodity? Show Answer

Q966) Accounting Cost equals Show Answer

Q967) Cost incurred in purchasing the Factor of Production is known as Show Answer

Q968) Which of the following is an example of an Accounting Cost? Show Answer

Q969) Expenditure incurred on Wages, Rent, Interest, etc. are included in Show Answer

Q970) Economic Cost equals Show Answer

Q971) Economic Cost includes Show Answer

Q972) Economic Cost includes Show Answer

Q973) Economic Cost includes Show Answer

Q974) Which of the following are considered as Economic Cost? Show Answer

Q975) ………. includes all payments paid to Factors of Production and Opportunity Cost. Show Answer

Q976) Reward for Entrepreneurial Ability (i.e. Normal Profit in the business) is included in Show Answer

Q977) Which of the following is true regarding Economic Cost and Accounting Cost? Show Answer

Q978) The difference between Economic Cost and Accounting Cost is equal to Show Answer

Q979) Which of the following is true regarding Economic Cost and Accounting Cost? Show Answer

Q980) When Total Revenue equals Accounting Costs, it means that the Firm Show Answer

Q981) When Total Revenue is less than Accounting Costs, it means that the Firm Show Answer

Q982) When Total Revenue is less than Accounting Costs, it means that the Firm incurs Losses Show Answer

Q983) When Total Revenue equals Economic Costs, it means that the Firm Show Answer

Q984) When Total Revenue exceeds Economic Costs, it means that the Firm Show Answer

Q985) When Total Revenue is less than Economic Costs, it means that the Firm Show Answer

Q986) Economic Profits are Show Answer

Q987) If there are Implicit Costs of Production Show Answer

Q988) Which of the following statements is false? Show Answer

Q989) Opportunity Cost refers to ………. in accepting an alternative course of action. Show Answer

Q990) Opportunity Cost refers to Show Answer

Q991) The Cost of one thing in terms of the alternative given up is known as Show Answer

Q992) Opportunity Costs are a result of Show Answer

Q993) Opportunity Costs arise only when resources are Show Answer

Q994) Opportunity Cost arises only when alternatives are available. This statement is Show Answer

Q995) If a resource can be put only to a particular use, then, Opportunity Costs Show Answer

Q996) Opportunity Costs Show Answer

Q997) Outlay Costs Show Answer

Q998) Opportunity Cost is Show Answer

Q999) Opportunity Costs are used for …….. purposes Show Answer

Q1000) Which of the following is not true with reference to Opportunity Cost? Show Answer

Q1001) Which of the following is/are true? Show Answer

Q1002) A Manager needs a Stenographer and a Clerk for the Accounts Department. But, due to financial constraints, he can able to recruit only one i.e. either Stenographer or Clerk. Finally he decides to recruit the Stenographer and had to give up the idea of having an Additional Clerk in the Accounts Department. Here, the Cost of not hiring an accounts clerk is known as Show Answer

Q1003) ………. Cost is the Total Additional Cost that a Firm has to incur, as a result of implementing a major managerial decision. Show Answer

Q1004) Incremental Cost equals Show Answer

Q1005) Which of the following statement is true? Show Answer

Q1006) ………. Cost is not relevant for Decision-Making Show Answer

Q1007) Which of the following statement best describes Sunk Costs? Show Answer

Q1008) Which of the following is correct? Show Answer

Q1009) Suppose you find Rs 100. If you choose to use ? 100 to go to a football match, your opportunity cost of going to the game is _______. Show Answer

Q1010) ………. are readily identified and are traceable to a particular product, service, operation or plant. Show Answer

Q1011) ………. are not readily identified nor visibly traceable to specific goods, services, operations, etc. Show Answer

Q1012) Accounting Process recognizes Show Answer

Q1013) The accounting cost at Nicole's pottery factory is: Show Answer

Q1014) The economic cost at Nicole's factory is: Show Answer

Q1015) The accounting profit at Nicole's pottery factory is Show Answer

Q1016) The economic profit at Nicole's factory is Show Answer

Q1017) ………. are costs that do not vary with output, upto a certain level of activity. Show Answer

Q1018) Fixed Cost can be defined as Show Answer

Q1019) Fixed Costs are Show Answer

Q1020) Fixed Costs are a function of Show Answer

Q1021) ……… Cost must be paid even if the Firm's level of output is zero. Show Answer

Q1022) If a Firm produces zero output in the short period Show Answer

Q1023) ……… Cost will be incurred even when the Firm's produces Nil output. Show Answer

Q1024) As output increases, Total Fixed Cost Show Answer

Q1025) Some portion of Fixed Costs need not be incurred when operations are suspended. These are called Show Answer

Q1026) Some portion of Fixed Costs cannot be avoided even when operations are suspended. These are called Show Answer

Q1027) Which of the following is not a Fixed Cost? Show Answer

Q1028) Of the following which one corresponds to Fixed Cost? Show Answer

Q1029) The following are some Costs incurred by a Clothing Manufacturer. State which among them will be considered as Fixed Cost. Show Answer

Q1030) ……… are costs that change, based on the level of output. Show Answer

Q1031) Variable Costs are Show Answer

Q1032) Variable Costs are a function of Show Answer

Q1033) ……… Cost must be incurred only when the Firm's produces output. Show Answer

Q1034) Variable Costs are incurred only when production takes place. So, they are in the nature of Show Answer

Q1035) All Variable Costs are avoidable or discretionary in nature. This statement is Show Answer

Q1036) As output increases, Total Variable Cost Show Answer

Q1037) Total Variable Costs always vary proportionately with output. This statement is Show Answer

Q1038) Over certain ranges of production Variable Costs vary less or more than proportionately depending on the utilisation of fixed facilities and resources during the production process. This statement is Show Answer

Q1039) Variable Cost includes the Cost of Show Answer

Q1040) Which of the following is an example of Variable Cost in the short run? Show Answer

Q1041) Marginal Cost changes due to change in _____ Cost Show Answer

Q1042) ………….. is the addition made to the total cost by production of an additional unit of output. Show Answer

Q1043) Marginal Cost can be defined as Show Answer

Q1044) ..........Costs are important in short term decision making of the Firm, to determine the output at which profits can be maximized. Show Answer

Q1045) With which of the following is the concept of Marginal Cost closely related? Show Answer

Q1046) Marginal Cost is independent of Variable Cost. This statement is - Show Answer

Q1047) Which of the following will affect Marginal Costs? Show Answer

Q1048) Which of the following will not affect Marginal Costs? Show Answer

Q1049) TCn – TCn - 1 = which cost function? Show Answer

Q1050) Marginal Costs per unit = Show Answer

Q1051) Which of the following describes the behaviour of Marginal Cost Curve? Show Answer

Q1052) Marginal Cost Curve of a Firm will be - Show Answer

Q1053) Marginal Cost Curve of a Firm will show ……… behaviour when compared to Marginal Product (MP) Curve. Show Answer

Q1054) Marginal Costs are applicable in - Show Answer

Q1055) Diminishing Marginal Returns implies: Show Answer

Q1056) Additional cost incurred by a Firm as a result of a business decision - Show Answer

Q1057) Costs which are already incurred once and for all, and cannot be recovered. Show Answer

Q1058) Which of the following statement is correct? Show Answer

Q1059) The cost incurred during the acquisition of an asset Show Answer

Q1060) Cost of Production incurred by an Individual firm is - Show Answer

Q1061) Social Cost = Show Answer

Q1062) Which of the following statements regarding Output is false? Show Answer

Q1063) If Output increases in the short-run, Total Cost will Show Answer

Q1064) If the Firm's output level is below its short run capacity, it is …….. its Plant and Machinery. Show Answer

Q1065) Which of the following statements is correct concerning the relationships among the Firm's Costs? Show Answer

Q1066) Which of the following statements is correct concerning the relationships among the Firm's Costs? Show Answer

Q1067) TFC Curve will be a Show Answer

Q1068) TFC Curve will be a straight line Show Answer

Q1069) TFC Curve will commence from Show Answer

Q1070) TVC Curve will be a Show Answer

Q1071) TVC Curve will Show Answer

Q1072) TVC Curve will commence from Show Answer

Q1073) If Variable Cost per unit (i.e. AVC) is constant at all levels of output, TVC Curve will be - Show Answer

Q1074) TC Curve will be a - Show Answer

Q1075) TC Curve will - Show Answer

Q1076) TC Curve will commence from - Show Answer

Q1077) TVC Curve will be - Show Answer

Q1078) The Vertical difference between TVC and TC is equal to- Show Answer

Q1079) "I am making a loss, but with the rent I have to pay, I can't afford to shut down at this point of time." If this entrepreneur is attempting to maximize profits or minimize losses, his behaviour in the short run is: Show Answer

Q1080) Average Cost is the same as - Show Answer

Q1081) Which of the following is the Average Cost? Show Answer

Q1082) Which of the following statements is true of the relationship among the Average Cost Function? Show Answer

Q1083) If TVC = 1,000, TFC = 400, then calculate ATC at 5 units. Show Answer

Q1084) Average Fixed Cost (AFC) equals - Show Answer

Q1085) Which of the following describes the behaviour of Average Fixed Cost? Show Answer

Q1086) In the short run, when the output of a Firm Increases, Its Average Fixed Cost Show Answer

Q1087) The Average Fixed Cost Show Answer

Q1088) In the short run, when the output of a Firm decreases, its Average Fixed Cost Show Answer

Q1089) Average Fixed Cost (AFC) of a Firm is ………. related to its output. Show Answer

Q1090) Which of the following describes the behaviour of Average Fixed Cost Curve? Show Answer

Q1091) Which of the following is true with respect to Average Fixed Cost? Show Answer

Q1092) The Average Fixed Cost Curve of a Firm Show Answer

Q1093) AFC Curve will be a Show Answer

Q1094) Which curve is downward sloping and does not touch the X-axis? Show Answer

Q1095) Which of the following Cost Curves is never 'U' shaped? Show Answer

Q1096) All of the following are U-Shaped Curves except the Show Answer

Q1097) AFC Curve Show Answer

Q1098) The AFC Curve passes through the Origin. This statement is Show Answer

Q1099) Which statement among below is correct in reference to AFC? Show Answer

Q1100) AFC curve is always ______ Show Answer

Q1101) Average Cost of Producing 50 units of a Commodity is ? 250 and fixed cost is ? 1000. What will be the average fixed cost of producing 100 units of the Commodity? Show Answer

Q1102) A Firm's average fixed Cost is Rs 20 at 6 units of output. What will it be at 4 units of output? Show Answer

Q1103) Average Variable Cost (AVC) equals Show Answer

Q1104) AVC decreases as output increases Show Answer

Q1105) Upto Normal Capacity of output, as output increases, AVC will Show Answer

Q1106) AVC decreases as output increases, upto normal capacity output, due to Show Answer

Q1107) AVC increases as output increases Show Answer

Q1108) Beyond Normal Capacity of output, as output increases, AVC will Show Answer

Q1109) AVC increases as output increases, beyond normal capacity output, due to Show Answer

Q1110) Average Variable Cost Curve Show Answer

Q1111) Average Variable Cost Curve slopes downwards Show Answer

Q1112) Average Variable Cost Curve has a negative slope Show Answer

Q1113) Average Variable Cost Curve slopes upwards Show Answer

Q1114) Average Variable Cost Curve has a positive slope Show Answer

Q1115) Average Variable Cost Curve is Show Answer

Q1116) The AVC Curve passes through the Origin. This statement is Show Answer

Q1117) A firm produces 10 units of commodity at an average total cost of Rs 200 and with a fixed cost of ? 500. Find out component of average variable cost in total cost. Show Answer

Q1118) Average Cost (AC) equals Show Answer

Q1119) Initially Average Cost declines sharply due to the reason that Show Answer

Q1120) Initially, even when there is an increase in Average Variable Cost (AVC), Average Cost (AC) may still decline due to the reason that Show Answer

Q1121) Beyond certain output level, when there is an increase in Average Variable Cost (AVC), Average Cost (AC) also increases due to the reason that Show Answer

Q1122) Average Cost Curve Show Answer

Q1123) The AC Curve and AVC Curve start increasing at the same output level only. This statement is Show Answer

Q1124) The AC Curve passes through the Origin. This statement is Show Answer

Q1125) Average Cost Curve is a Show Answer

Q1126) Average total cost to firm is ? 600 when it produces 10 units of output and ? 640 when the output is 11 units. The MC of the 11th unit is Show Answer

Q1127) Marginal Cost Curve cuts the Average Cost Curve Show Answer

Q1128) When ………, we know that the Firms must be producing at the minimum point of the Average Cost Curve and so there will be productive efficiency. Show Answer

Q1129) The relationship between the AC and MC is that Show Answer

Q1130) Which of the following statements is correct? Show Answer

Q1131) If a Firm's Average Variable Cost Curve is rising, its Marginal Cost Curve must be Show Answer

Q1132) Which of the following is true of the relationship between Marginal Cost and Average Cost Functions? Show Answer

Q1133) Marginal Cost is Show Answer

Q1134) When shape of Average Cost Curve is upward, Marginal Cost Show Answer

Q1135) The MC Curve cuts the AVC and ATC Curves Show Answer

Q1136) MC Curve cuts the AVC and ATC Curves Show Answer

Q1137) When AC falls as a result of an increase in output Show Answer

Q1138) MC Curve is lower than AC, when Show Answer

Q1139) When AC increases as a result of an increase in output Show Answer

Q1140) When MC Curve intersects AC Curve, it means that Show Answer

Q1141) When MC Curve intersects AC Curve, it means that Show Answer

Q1142) A Firm's Average Total Cost is Rs 300 at 5 units of output and Rs 320 at 6 units of output. The Marginal Cost of producing the 6th unit is Show Answer

Q1143) A Firm has a Variable Cost of Rs 1000 at 5 units of output. If Fixed Costs are Rs 400, what will be the Average Total Cost at 5 units of output? Show Answer

Q1144) What is the Average Total Cost in producing 20 units, if Fixed Cost is Rs 5,000 and Variable Cost is Rs 200? Show Answer

Q1145) A Firm producing 7 units of output has an Average Total Cost of Rs 150 and has to pay Rs 350 to its Fixed Factors of Production whether it produces or not. How much of the Average Total Cost is made up of Variable Costs? Show Answer

Q1146) For producing 100 units, Total Variable Cost is Rs 500 and Total Fixed Cost is Rs 1,000.Compute Average Cost. Show Answer

Q1147) The Average Total Cost of producing 50 units is Rs 250 and Total Fixed Cost is Rs 1,000. What is the Average Fixed Cost of producing 100 units? Show Answer

Q1148) The period of time in which the Plant Capacity can be varied is known as Show Answer

Q1149) Which is the other name given to the Long Run Average Cost Curve? Show Answer

Q1150) Which one of the following is also known as Planning Curve? Show Answer

Q1151) LAC = Least Cost combination for an appropriate output level. This statement is Show Answer

Q1152) In the long-run, the Firm will operate at the …….. for any output level, by choosing the appropriate Plant Size. Show Answer

Q1153) In the long-run, the Firm will decide on which SAC Curve it should operate to produce a given output, so that its Show Answer

Q1154) In the long-run, the Firm will try to select Show Answer

Q1155) In the long-run, when there are infinite SAC Curves, the LAC Curve will be Show Answer

Q1156) LAC Curve is tangent to each of the infinite SAC Curves. This statement is Show Answer

Q1157) LAC Curve is the connection of all minimum points of SAC Curves. This statement is Show Answer

Q1158) When LAC Curve is declining, it will be tangent to the Show Answer

Q1159) When LAC Curve is ...........it will be tangent to the falling portions of the SAC Curves. Show Answer

Q1160) When LAC Curve is rising, it will be tangent to the Show Answer

Q1161) When LAC Curve is ……….. it will be tangent to the rising portions of the SAC Curves. Show Answer

Q1162) Which of the following statements concerning the Long-Run Average Cost Curve is false? Show Answer

Q1163) If the LAC Curve falls as output expands, this falls is due to Show Answer

Q1164) If the LAC Curve rises as output expands, this falls is due to Show Answer

Q1165) Long Run Average Cost Curves are broadly Show Answer

Q1166) The LAC Curve Show Answer

Q1167) Positively sloped (i.e. rising) part of long run Average Cost Curve is due to which of the following ________ Show Answer

Q1168) Planning curve is related to which of the following Show Answer

Q1169) Total Revenue = Show Answer

Q1170) Average Revenue = Show Answer

Q1171) Marginal Revenue = Show Answer

Q1172) Marginal Revenue is equal to Show Answer

Q1173) The firm will attain equilibrium at a point where MC curve cuts ______ curve from below Show Answer

Q1174) Price = ……… Show Answer

Q1175) Price X Quantity = ……….. Show Answer

Q1176) If P = Price, and Q = Quantity sold, which of the following statements are correct? Show Answer

Q1177) If TR = Total Revenue, and Q = Quantity sold, then TR ÷ Q refers to Show Answer

Q1178) If Price = Rs 50 and Quantity is 1,200 units, then Total Revenue = Show Answer

Q1179) If Total Revenue = Rs 1,00,000 when 20,000 units are sold, then Average Revenue = Show Answer

Q1180) If Total Revenue = Rs 2,00,000 when 20,000 units are sold, then Average Revenue = Show Answer

Q1181) If a seller obtains Rs 3,000 after selling 50 units and Rs 3,100 after selling 52 units then MR will be Show Answer

Q1182) When Price is Rs 10, 5 units can be sold. When price is reduced to Rs 9, 6 units can be sold. Here, Marginal Revenue will be Show Answer

Q1183) When Price is Rs 20, 5 units can be sold. When price is reduced to Rs 19, 6 units can be sold. Here, Marginal Revenue will be Show Answer

Q1184) When Price is Rs 50,12 units can be sold. When price is reduced to Rs 48, 15 units can be sold. Here, Marginal Revenue will be Show Answer

Q1185) When Price is Rs 5, 40 units can be sold. When price is reduced to Rs 4, 60 units can be sold. Here, Marginal Revenue will be Show Answer

Q1186) If a Seller gets Rs 10,000 by selling 100 units and Rs 14,000 by selling 120 units, his Marginal Revenue is Show Answer

Q1187) When Price = Rs 20, quantity demanded is 9 units, and when Price = Rs 19, quantity demanded is 10 units. What is the Marginal Revenue resulting from an increase in output from 9 units to 10 units? Show Answer

Q1188) When Price = Rs 20, quantity demanded is 15 units, and when Price = Rs 18, quantity demanded is 16 units. What is the Marginal Revenue resulting from an increase in output from 15 units to 16 units? Show Answer

Q1189) As quantity increases, Total Revenue (TR) Curve Show Answer

Q1190) If Total Revenue (TR) increases, Marginal Revenue (MR) will be Show Answer

Q1191) If Total Revenue (TR) decreases, Marginal Revenue (MR) will be Show Answer

Q1192) If Total Revenue (TR) is maximum, Marginal Revenue (MR) will be Show Answer

Q1193) Generally, Marginal Revenue (MR) Curve Show Answer

Q1194) Generally, Average Revenue (AR) Curve Show Answer

Q1195) Generally, as quantity sold increases, Marginal Revenue (MR) and Average Revenue (AR) Curve Show Answer

Q1196) Generally, as quantity sold increases, Marginal Revenue (MR) Curve Show Answer

Q1197) Generally, as quantity sold increases, Average Revenue (AR) Curve Show Answer

Q1198) Let, Marginal Revenue = MR and Average Revenue = AR. Generally, as quantity sold increases Show Answer

Q1199) Let, Marginal Revenue = MR and Average Revenue = AR. Generally, as quantity sold increases Show Answer

Q1200) Marginal Revenue (MR) Show Answer

Q1201) If Marginal Revenue (MR) Curve is depicted on a graph with Quantity on X axis Show Answer

Q1202) Average Revenue (AR) Show Answer

Q1203) What is the relationship between AR and MR? Show Answer

Q1204) Average Revenue (AR) Curve denotes Show Answer

Q1205) If Average Revenue (AR) Curve is depicted on a graph with Quantity on X axis Show Answer

Q1206) Which of the following is correct? Show Answer

Q1207) If Marginal Revenue = MR, Average Revenue = AR, and Price Elasticity of Demand = 'e' which of the following is correct? Show Answer

Q1208) If Marginal Revenue = MR, Price Elasticity of Demand = 'e', and e < 1, then MR will be Show Answer

Q1209) Marginal Revenue will be negative if Elasticity of Demand is Show Answer

Q1210) If Marginal Revenue = MR, Price Elasticity of Demand = 'e', and e = 1, then MR will be Show Answer

Q1211) If Marginal Revenue = MR, Price Elasticity of Demand = 'e', and MR is positive (i.e. MR > 0), e will be Show Answer

Q1212) If Marginal Revenue = MR, Price Elasticity of Demand = 'e', and MR is negative (i.e. MR < 0), e will be Show Answer

Q1213) If Marginal Revenue = MR, Price Elasticity of Demand = 'e', and MR = 0, e will be Show Answer

Q1214) If Average Revenue (AR) = Rs 30, Price Elasticity of Demand (e) = 1.5, then MR will be Show Answer

Q1215) If Average Revenue (AR) = ? 30, Price Elasticity of Demand (e) = 1, then MR will be - Show Answer

Q1216) If Average Revenue (AR) = Rs 30, Price Elasticity of Demand (e) = 0.5, then MR will be Show Answer

Q1217) If Average Revenue (AR) = Rs 300, Price Elasticity of Demand (e) = 2.5, then MR will be Show Answer

Q1218) If Average Revenue (AR) = Rs 300, Price Elasticity of Demand (e) = 4, then MR will be Show Answer

Q1219) Given AR=5, Elasticity of demand =2 find MR- Show Answer

Q1220) Which is the first order condition for the profit of a Firm to be maximum? Show Answer

Q1221) In the short run, as the prices are fixed, Firms can maximize their profit when they operate at Show Answer

Q1222) If Marginal Cost = MC, and Marginal Revenue = MR, then, for achieving equilibrium output, the conditions are Show Answer

Q1223) If Marginal Cost = MC, and Marginal Revenue = MR, then, for achieving equilibrium output Show Answer

Q1224) If Marginal Cost = MC, and Marginal Revenue = MR, then, for achieving equilibrium output Show Answer

Q1225) If Marginal Cost = MC, and Marginal Revenue = MR, and MC < MR, the Firm should Show Answer

Q1226) Suppose a Firm is producing a level of output such that MR>MC. What should be Firm do to maximize its profits? Show Answer

Q1227) What should Firm do when Marginal Revenue is greater than Marginal Cost? Show Answer

Q1228) If Marginal Cost = MC, and Marginal Revenue = MR, and MC > MR, the Firm should Show Answer

Q1229) If Marginal Cost = MC, and Marginal Revenue = MR, then, for achieving equilibrium output Show Answer

Q1230) Let Marginal Cost = MC, and Marginal Revenue = MR. If MC Curve cuts MR from below, it means Show Answer

Q1231) Let Marginal Cost = MC, and Marginal Revenue = MR. If MC Curve cuts MR from above, it means Show Answer

Q1232) Let Marginal Cost = MC, and Marginal Revenue = MR. If MC Curve cuts MR from above, it means Show Answer

Q1233) Let Marginal Cost = MC, and Marginal Revenue = MR. If MC Curve cuts MR from below, it means Show Answer

Q1234) If any unit of production adds more to revenue than to cost it will result into Show Answer

Q1235) If any unit of production adds more to cost than to revenue it will result into Show Answer

Q1236) When the Firm is said to be in equilibrium? Show Answer

Q1237) When a Market is in equilibrium Show Answer

Q1238) Profits of the Firm will be more at Show Answer

Q1239) Let Average Cost = AC, and Average Revenue = AR. If AR > AC, it means that the Firm - Show Answer

Q1240) Let Average Cost = AC, and Average Revenue = AR. If AR = AC, it means that the Firm - Show Answer

Q1241) Let Average Cost = AC, and Average Revenue = AR. If AR < AC, it means that the Firm - Show Answer

Q1242) Let Average Cost = AC, and Average Revenue = AR. If AC < AR, it means that the Firm - Show Answer

Q1243) Let Average Cost = AC, and Average Revenue = AR. If AC = AR, it means that the Firm - Show Answer

Q1244) Let Average Cost = AC, and Average Revenue = AR. If AC > AR, it means that the Firm - Show Answer

Q1245) When ………., the Firm will be earning just Normal Profits. Show Answer

Q1246) When does a Firm earn Normal Profits? Show Answer

Q1247) What are conditions when the Firm earns Super- Normal Profit? Show Answer

Q1248) For earning super-normal profits, the condition is ……… at the point when MC = MR (MC cutting from below) Show Answer

Q1249) For earning normal profits, the condition is ……… at the point when MC = MR (MC cutting from below) Show Answer

Q1250) For having economic losses, the condition is …….. at the point when MC = MR (MC cutting from below) Show Answer

Q1251) When ………, we know that the Firms are earning just Normal Profits. Show Answer

Q1252) The Average Profit is the difference between- Show Answer

Q1253) When AR= ? 10 and AC= ? 8, the Firm makes- Show Answer

Q1254) Which of the following statements is incorrect? Show Answer

Q1255) Suppose that a Sole Proprietorship Firm is earning Total Revenues of Rs 120,000 and is incurring Explicit Costs of Rs 90,000. If the Owner could work for another Company for Rs 50,000 a year, we would conclude that Show Answer

Q1256) Suppose that a Sole Proprietorship is earning Total Revenue of Rs 1,50,000 and is incurring Explicit Costs of Rs 75,000. If the Owner could work for another Company for Rs 30,000 a year, it can be concluded that Show Answer