economics

If a firm’s price is less than average cost but more than part of variable cost, the firm is covering?

A. all of its fixed cost and variable cost B. all of its fixed cost and part of variable cost…

6 years ago

In the firm’s production process, marginal cost?

A. falls continuously throughout B. falls and later rises C. remains unchanged throughout D. rises and later falls Correct Answer:…

6 years ago

Which of the following is capable of increasing the population of a country?

A. decrease in the death rate B. increase in the death rate C. poor medical facilities D. decrease in the…

6 years ago

Why is the law of diminishing returns a short-run phenomenon?

A. all inputs are fixed B. all inputs are variable C. some outputs are variable D. some inputs are variable…

6 years ago

The law of diminishing marginal utility applies to a?

A. firm which minimizes cost B. consumer who maximizes satisfaction C. producer who maximizes marginal product D. consumer who minimizes…

6 years ago

If a particular consumer derives total utility of 22 units having consumed 4 units of a given product, his average utility will be?

A. 88 utils B. 18 utils C. 5.5 utils D. 3.5 utils Correct Answer: Option C C. 5.5 utils

6 years ago

Given the demand function Qd = 20 – ½P. What is Qd when P is $12?

A. 6 units B. 10 nits C. 12 units D. 14 units Correct Answer: Option D D. 14 units

6 years ago

The allocation of goods and services in a free market economy is performed by?

A. the price system B. the banking system C. the central planning body D. government budgets Correct Answer: Option A…

6 years ago

Any price below the equilibrium price will lead to?

A. increase in supply B. excess demand C. equality of demand and supply D. decreases in demand Correct Answer: Option…

6 years ago

A decrease in the demand for a product X resulted in a decrease in the demand for another product Y. The demand for X and Y is?

A. derived B. composite C. joint D. competitive Correct Answer: Option C C. joint

6 years ago