Deck 1: Economics: Concepts, Problems, and Analysis

Question 1

The subject matter of economics is concerned with

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

Answer 1

All of the above

Question 2

The wants of the people are

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

Answer 2

Unlimited

Question 3

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

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

Answer 3

Petrol

Question 4

Production is said to be efficient when:

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

Question 5

Economics is a social science because

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

Question 6

Marginal product of a factor is

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

Question 7

Production function expresses

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

Question 8

At the 'point of inflection'

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

Question 9

Economies of scale refers to:

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

Question 10

The law of Diminishing returns is applicable to:

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

Question 11

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

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

Question 12

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

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