A. There are no fixed factors of production
B. There are no variable factors of production
C. Utility is maximised when marginal product falls
D. Some factors of production are fixed
Related Mcqs:
- According the law of diminishing returns ?
A. The marginal product fall as more units of a variable factor are added to a fixed factor
B. Marginal utility falls as more unity of a product are consumed
C. The total product falls as more units of a variable factor are added to a fixed factor
D. The marginal product increases as more units of a variable factor are added to a fixed factor - Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
XA. wages and rents should fall in Country A
B. wages and rents should rise in Country A
C. wages should rise and rents should fall in Country A
D. wages should fall and rents should raise in Country A - According to the law of diminishing utility ?
A. Utility is at a maximum with the first unit
B. Increasing units of consumption increase the marginal utility
C. Marginal product will fall as more units are consumed
D. Total utility will rise at a falling rate as more units are consumed - Diminishing marginal return implies ?
A. decreasing average fixed costs.
B. decreasing marginal costs.
C. decreasing average variable costs.
D. increasing marginal costs. - If a factor exhibits diminishing marginal product, hiring additional units of the factor will ?
A. cause a reduction is output
B. have no effect on output
C. increase the marginal product of the factor
D. generate ever smaller amounts of output - If a production function exhibits diminishing marginal product the slope of the corresponding total-cost curve ?
A. is liner (a straight line)
B. could be any of these answers
C. becomes steeper as the quantity of output increases
D. become flatter as the quantity of output increases. - If a production function exhibits diminishing marginal product. its slope ?
A. is linear (a straight line)
B. becomes steeper as the quantity of the input increase
C. could be any of these answers
D. becomes flatter as the quantity of the input increase - If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?
A. be flat (horizontal)
B. slope upward
C. slope downward
D. be U-shaped. - The accelerator assumes ?
A. The marginal propensity to consume is constant
B. The economy is at full employment
C. There is a constant relationship between net investment and the rate of change of output
D. The multiplier is constant - The synthesis of the elitist and pluralist approaches realist democracy assumes that_____________?
A. voters do have a choice in elite competition
B. the elites have a consensus on basic democracy
C. new groups can become the new elite
D. all of the above
