Related Mcqs:

1. The determination by the state, of what shall be produced and how factors of production shall be allocated among different uses ?

   A. Circular flow model
   B. Cognitive planning
   C. Centralized planning
   D. None

2. The principle that if one factor of production is fixed and constant addition of other factors are combined with it, the marginal productivity of variable factors will eventually decline ?

   A. Marginal returns
   B. Diminishing returns
   C. Both
   D. None

3. Proportion of school aged children who don’t complete a particular school cycle ?

   A. IIIiteracy rate
   B. Dropout rate
   C. Children un education rate
   D. All

4. A technological innovation that increase the production while using the same capital input?

   A. Capital saving technological process
   B. Production intensive technique
   C. Capital intensive technique
   D. None

5. An economic system in which property resources are publicly owned and govt uses central economic planning to direct & coordinate economic activities ?

   A. Command economy
   B. Closed economy
   C. Open economy
   D. None

6. The monitory income a firm sacrifices when it uses a resource it rosins rather than supplying the resource in the market ?

   A. Implicit cost
   B. Explicit cost
   C. Economic cost
   D. Nominal cost

7. The study of how economies are transformed from stagnation to growth and from low income to higher income status?

   A. Econometrics
   B. Development economics
   C. Development plan
   D. All

8. Production possibility curve is always concave because ?

   A. The curve gets steeper as we move downward
   B. The marginal benefit decreases as more of a good is consumed
   C. In reflects the law of increasing opportunity cost
   D. Resources are scarce

9. Any point inside the production possibility curve represents ?

   A. Unemployment
   B. Failure to achieve productive efficiency
   C. Both A. and B.
   D. None of these

10. An industry in which expansion through the entry of firms decreases the prices, firms in the industry must pay for resources and there fore decreases their production costs ?

    A. Declining industry
    B. Decreasing cost industry
    C. Both
    D. None