“When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output”. This statement is known as the______________?

Related Mcqs:

1. “Under conditions of perfect competition, the price at which any given product will be supplied and purchased is the price that will result in the supply and the demand being equal.” This statement is known as the_________________?

   A. Law of diminishing return
   B. Law of supply
   C. Law of demand
   D. Law of supply and demand

2. A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000?

   A. 28.33 %
   B. 29.17 %
   C. 30.12 %
   D. 30.78 %

3. A _____________ is a market situation where economies of scale are so significant that cost are only minimized when the entire output of an industry is supplied by a single producer so that the supply costs are lower under monopoly that under perfect competition ?

   A. Perfect monopoly
   B. Bilateral monopoly
   C. Natural monopoly
   D. Ordinary monopoly

4. What is defined as the certificate of indebtedness of corporation usually for a period not less than 10 years and guaranteed by a mortgage on certain assets of a corporation ?

   A. Bond
   B. T-bills
   C. Stock
   D. Promissory note

5. All the proceeds which are received by the business as a result of the sale of goods is called _________________?

   A. Net income
   B. Gross income
   C. Net revenue
   D. Total sales

6. What is the type of annuity that does not have a fixed time span but continues indefinitely or forever ?

   A. Ordinary annuity
   B. Perpetuity
   C. Annuity due
   D. Deferred annuity

7. What is the term for an annuity with a fixed time span ?

   A. Ordinary annuity
   B. Perpetuity
   C. Annuity certain
   D. Annuity due

8. A leading shoe manufacturer produces a pair of Lebron James signature shoes at a labor cost of P 900.00 a pair and a material cost of P 800.00 a pair. The fixed charges on the business are P 5,000,000 a month and the variable costs are P 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of shoes sold. If the shoes sell at P 5,000 a pair, how many pairs must be produced each month for the manufacturer to break-even ?

   A. 2.590
   B. 2,632
   C. 2,712
   D. 2,890

9. In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year ?

   A. Straight line method
   B. Sinking fund method
   C. Sum-of-year digit method
   D. Declining balance method

10. What refers to the exchange mechanism that brings together the sellers and the buyers of a product, factor of production or financial security ?

    A. Mall
    B. Market
    C. Store
    D. Office