Q.       According to current thinking, the law of diminishing returns applies to: A.           All fields of production          ...

Q.  The cost of one thing in terms of the alternative given up is known as: A.           Production cost           B.            Physical ...

Q. Elasticity of supply refers to the degree of responsiveness of supply of a commodity to changes in its: A.           Demand            ...

Q.       An increase in the supply of a commodity is caused by: A.           Improvements in its technology     B.            Fall in the prices of other commodities ...

Q.     What is the shape of the average fixed cost (AFC) curve? A.           U-shape            B.            Horizontal upto a ...

Q.       Which one of the following is also known as plant curves? A.           Long-run average cost (LAC) curves             ...

Q.  Some economists refer to iso-product curves as: Engels curve         Production indifference curveBudget line            Ridge line Answer: Production indifference curve

Q.        Which of the following is not a feature of iso-product curves? Iso-product curves: A.           Are downward sloping to the right B.            Show different input combination ...

Q. The horizontal demand curve parallel to x-axis implies that the elasticity of demand is: ZeroInfiniteEqual to oneGreater than zero but less than infinity Answer: Infinite

Q. The production techniques are technically efficient: A.           Below the lower ridge line    B.            Above the upper ridge line ...