1st Year Principles of Economics Chapter 8 TestResource Pricing

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

1. Amount of money attained by selling marginal product is called:

   1. Average revenue product

   2. Marginal revenue product

   3. Total revenue product

   4. None of the above

2. According to which theory every factor of production gets the reward of its services equal to its marginal product?

   1. Demand and supply theory

   2. Liquidity preference theory

   3. Marginal productivity theory

   4. Uncertainty theory

3. Which law is applicable on production process under marginal productivity theory?

   1. Law of increasing return

   2. Law of constant return

   3. Law of decreasing return

   4. Law of decreasing cost

4. Cost of a firm on the optimum combination of factors of production is:

   1. Minimum

   2. Maximum

   3. Reasonable

   4. None of the above

5. Marginal revenue product is the amount of money attained by selling:

   1. Average product

   2. Marginal product

   3. Total product

   4. None of the above

6. Which theory of economics is hidden in the following equation:

   1. Liquidity preference theory

   2. Marginal productivity theory

   3. Modern theory of rent

   4. Ricandian theory of rent

7. Marginal revenue product curve is called:

   1. Demand curve of the firm

   2. Supply curve of the firm

   3. Demand curve of the industry

   4. Supply curve of industry

8. Second name of factor of production is:

   1. Productive services providers

   2. Producers of goods

   3. Banking services providers

   4. Inputs

9. Demand for factor of production is:

   1. Direct

   2. Derived

   3. Positive

   4. Negative

10. Tendency of demand curve of a factor of production is:

    1. Positive

    2. Negative

    3. Zero

    4. Horizontal