1st Year Principles of Economics Chapter 5 TestLaws Of Return

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. The second name of law of constant return is:

   1. Law of decreasing cost

   2. Law of increasing cost

   3. Law of cost

   4. Law of constant cost

2. When marginal product is zero total product is:

   1. Maximum

   2. Minimum

   3. Negative

   4. Zero

3. In a production process when units of variable factors along with fixed factor of production are increased marginal cost goes on falling this tendency in economics is called:

   1. Law of decreasing cost

   2. Law of constant cost

   3. Law of increasing cost

   4. Law of decreasing return

4. When marginal product is negative, total product:

   1. Decreases

   2. Increases

   3. Zero

   4. Infinite

5. The sector of production in which nature and human beings play an equal role there is applicable:

   1. Law of decreasing return

   2. Law of decreasing cost

   3. Law of increasing return

   4. Law of constant return

6. Production of last unit of production of a factor is called:

   1. Total product

   2. Average product

   3. Marginal product

   4. Positive product

7. In law of increasing cost marginal cost:

   1. Increases

   2. Decreases

   3. Remains constant

   4. Remains fixed

8. When marginal product does not remain constant it is called:

   1. Increasing return

   2. Decreasing return

   3. Constant return

   4. Marginal return

9. In production process when units of variable factors along with fixed factor of production are increased marginal product goes on falling this tendency in economics is called:

   1. Law of decreasing return

   2. Law of increasing return

   3. Law of production

   4. Law of constant return

10. The number of laws of cost is:

    1. One

    2. Two

    3. Three

    4. Four