Question 1 of 10 50 total questions
Technical progress that leads to a reduction in costs results in?
A an increase in equilibrium price and quantity
B a decrease in equilibrium price and quantity
C an increase in equilibrium price and decrease in equilibrium quantity
D a decrease in equilibrium price and increase in equilibrium quantity
The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continuously, his?
A total utility must fall
B marginal utility must fall
C marginal utility may rise even though his total utility is falling
D marginal utility may fall even though his total utility may be rising
A situation in which all inputs are doubled and output also doubles is known as?
A constant proportions
B constant returns
C increasing returns to scale
D constant returns to scale
At the point of profit maximization by a firm, marginal cost is?
A minimum
B falling
C constant
D rising
Economics of scale operate only when?
A marginal cost is falling with input
B average cost is falling with output
C fixed cost is variable
D variable cost is less than fixed cost
A firm achieves least-cost in production by substituting factors until?
A their prices are equal
B the ratio of their marginal -physical-products equals the ratio of their prices
C their marginal -physical-products are each equal to their factor prices
D their marginal -physical-products are each equal to zero
Which of following rewards is associated with entrepreneurship as a factor of production?
A Salaries
B Profit
C Interests
D Rents
One of the major advantages of specialization is that?
A the worker becomes a tenderer of machines
B it causes more employment of labour
C less machinery is required for production
D the worker wastes less time between operations
In economic life, choice among alternatives depends on the?
A income of the decision maker
B scarcity of resources
C scale of preference of the decision maker
D status of the decision maker
If one orange costs 20k and one kilogram of beef costs N10.00, the opportunity cost of one kilogram of beef is?
A 50 oranges
B 10 oranges
C 5 oranges
D 9.80
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