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1682406846MCQ On Lecture - 3

The document contains multiple-choice questions (MCQs) related to economic concepts such as product output, costs, and the law of diminishing returns. It includes questions about definitions of total, average, and marginal products, as well as fixed and variable costs. The answers to each question are provided, indicating key economic principles and relationships.

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AHASAN HABIB
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36 views1 page

1682406846MCQ On Lecture - 3

The document contains multiple-choice questions (MCQs) related to economic concepts such as product output, costs, and the law of diminishing returns. It includes questions about definitions of total, average, and marginal products, as well as fixed and variable costs. The answers to each question are provided, indicating key economic principles and relationships.

Uploaded by

AHASAN HABIB
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MCQ for Module -C

1 ………….is defined as the output per unit of variable input.


(a) Total product (b) Average product
(c) Marginal product (d) None of there
Ans – Option (b)
2…………..of an input is defined as the change in output per unit of
change in the input when all other inputs are held constant.
(a)Total product b) Average product
(c) Marginal product (d) None of there

Ans – Option (c)


3. The difference between the revenue and cost is called
(a) The firm’s profit (b) The firm’s lose
(c) The firm’s Revenue (d) The firm’s output
Ans -Option (a)
4. The short run is a time period in which:
A) all resources are fixed. B) the level of output is fixed.
C) the size of the production plant is variable. D) some resources are fixed and others are variable.

Ans: D
5. The law of diminishing returns only applies in cases where:
A) there is increasing scarcity of factors of production.
B) the price of extra units of a factor is increasing.
C) there is at least one fixed factor of production.
D) capital is a variable input.
Ans: C
6. The marginal product of labor curve shows the change in total product resulting from a:
A) one-unit increase in the quantity of a particular resource used, letting other resources vary.
B) one-unit increase in the quantity of a particular resource used, holding constant
other resources.
C) change in the cost of a variable resource. D) change in the cost of a fixed resource.

Ans: B

7. Which is not a fixed cost?


A) monthly rent of Tk.1,000 contractually specified in a one-year lease
B) an insurance premium of Tk.50 per year, paid last month
C) an attorney's retainer of Tk.50,000 per year
D) a worker's wage of Tk15 per hour
Ans: D
8. If all resources used in the production of a product are increased by 20 percent and output increases by 20
percent, then there must be:
A) economies of scale. B) diseconomies of scale.
C) constant returns to scale. D) increasing average total costs.

Ans : C

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