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4

The difference between laws of return and laws of return to scale is:

A. In case of laws of return, one factor of production is constant and other is variable while in laws of return to scale both factors of production are variable

B. In case of laws of return to scale, one factor of production is constant and other is variable while in laws of return, both factors of production are variable

C. Both a and b

D. None of the above

Correct Answer :

A. In case of laws of return, one factor of production is constant and other is variable while in laws of return to scale both factors of production are variable


Related Questions

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4

Which of the following is not an explicit cost of production?

A. Wage of self-employed proprietor

B. Depreciation on machinery

C. Returns on owned capital

D. Cost of raw materials

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4

In collusive olligopoly, the firms may make:

A. Open agreements

B. Secret agreements

C. Both a and b

D. None of the above

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4

The Substitution Effect (S.E) is always:

A. Negative

B. Zero

C. Positive

D. Infinite

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4

Liquidity of Preference Theory was introduced by:

A. Alfred Marshal

B. Lord Keynes

C. Karl Marx

D. Prof. Robbins

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4

In the short-run, in which one of the following situations would a competitive seller close down (shut-down)?

A. When he cannot produce at an economic profit

B. When price falls short of average variable cost at every level of output

C. When price falls short of average fixed cost at every level of output

D. When price falls short of average total cost at every level of output

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4

Price discrimination is possible:

A. Only under monopoly situation

B. Under any market form

C. Only under monopolistic competition

D. Only under perfect competition

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4

A vertical supply curve parallel to the price axis implies that the elasticity of supply is:

A. Zero

B. Infinite

C. Equal to one

D. Greater than zero but less than infinite

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4

The cournot model is a model of:

A. Instable equilibrium

B. Stable equilibrium

C. Constant equilibrium

D. Fluctuating equilibrium

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4

In real life firms:

A. Loss because of past

B. Learn from past

C. Destroy because of past

D. None of the above

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4

The cost that a firm incurs in purchasing or hiring any factor of production is referred to as:

A. Explicit cost

B. Implicit cost

C. Variable cost

D. Fixed cost

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4

The number of sellers in oligopoly is:

A. Two

B. One

C. Very large

D. A few

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4

The slope of budget line shows the price ratios of:

A. Many goods

B. Few goods

C. Two goods

D. Three goods

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4

At the point where the straight line from the origin is tangent to the TC curve, AC is:

A. Maximum

B. Minimum

C. Equal

D. Lower

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4

The water diamond paradox was firstly resolved with the help of:

A. Labor theory of value

B. Individual theory of value

C. Producer theory of value

D. Consumer theory of value

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4

The point where the supply and demand curves intersect on a graph determines:

A. Market price

B. Equilibrium price

C. Long-term price

D. Short-term price

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4

A mixed economy is characterized by the coexistence of:

A. Modern and traditional industries

B. Public and private sectors

C. Foreign and domestic investments

D. Commercial and subsistence farming

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4

The production possibility curve (PPC) is concerned with:

A. Resources of the economy

B. Interests of the economy

C. Limitations of the economy

D. Qualities of the economy

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4

When total product falls:

A. MP is positive

B. MP is negative

C. MP is falling

D. MP is rising

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4

According to Chamberline, in monopolistic competition, differentiation is determined by:

A. Choices

B. Preferences

C. Both a and b

D. None of the above

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4

Who introduced the concept of Elasticity of Demand into economic theory?

A. Alfred Marshal

B. Adam Smith

C. Karl Marx

D. George Stigler

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4

When the law of demand operates the demand curve:

A. Slopes downward

B. Slopes upward

C. Becomes horizontal

D. Becomes vertical

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4

The model which gives us information about price and output changes in different periods is:

A. Stable cobweb model

B. Perpetual oscillation

C. Both(a) and(b)

D. None of them

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4

If a monopolist is producing under decreasing cost conditions, increase in demand is beneficial to the society because:

A. Consumers get better quality goods

B. Cost of production falls and hence price will follow

C. Goods will be sold in many markets

D. None of the above

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4

The MRTS along an iso-quant goes on to:

A. Appear

B. Diminish

C. Prominent

D. Increase

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4

There is no difference between fixed and variable factors in the:

A. Long run

B. Short run

C. Average run

D. None of the above

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4

According to Marginalists, the price of any commodity is determined by:

A. Marginal usefulness

B. Marginal cost

C. Both of them

D. None of them

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4

Implicit costs are the costs:

A. Which are not incurred by the firm and may accrue to the community

B. Of resources the cost of factors owned by the firm

C. Of resources supplied by the household

D. Of government externalities

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4

Identify the author of The Principles of political Economy and Taxation:

A. Alfred Marshal

B. J.S.Mill

C. David Ricardo

D. A.C.Pigou

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4

Consumer surplus is the difference between

A. Price demanded and price paid

B. Price quoted and price actually paid

C. Price that a consumer is willing to pay and the price actually paid

D. None of the above

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4

When price decreases and with it the total outlay on a commodity also decreases, it is a case of:

A. Perfect elasticity (infinitely elastic)

B. Relative elasticity (greater than one elasticity)

C. Perfect inelasticity (zero elasticity)

D. Relative inelasticity (less than one elasticity)