# Principles Of Micro Economics Set 3

This set of Principles of Micro Economics Multiple Choice Questions & Answers (MCQs) focuses on Principles Of Micro Economics Set 3

Q1 | Mannheim defines ________as the sum of those methods by which a societytries to influence human behavior to maintain a given order.
Q2 | Implicit costs are:
Q3 | Which would be an implicit cost for a firm? The cost:
Q4 | If a firm's revenues just cover all its opportunity costs, then:
Q5 | Suppose a firm sells its product at a price lower than the opportunity cost of theinputs used to produce it. Which is true?
Q6 | Suppose that a firm produces 200,000 units a year and sells them all for Rs.10each. The explicit costs of production are Rs.1,500,000 and the implicit costs of production are Rs. 300,000. The firm has an accounting profit of:
Q7 | The short run is a time period in which:
Q8 | The law of diminishing returns only applies in cases where:
Q9 | The marginal product of labor curve shows the change in total productresulting from:
Q10 | When the total product curve is falling, the:
Q11 | When marginal product reaches its maximum, what can be said of totalproduct?
Q12 | Variable costs are:
Q13 | Which is not a fixed cost?
Q14 | If you know that with 8 units of output, average fixed cost is Rs. 12.50 andaverage variable cost is Rs. 81.25, then total cost at this output level is:
Q15 | With fixed costs of Rs. 400, a firm has average total costs of Rs. 3 and averagevariable costs of Rs. 2.50. Its output is:
Q16 | The reason the marginal cost curve eventually increases as output increases forthe typical firm is because:
Q17 | If the short-run average variable costs of production for a firm are rising, thenthis indicates that:
Q18 | If a more efficient technology was discovered by a firm, there would be:
Q19 | A firm encountering economies of scale over some range of output will have a:
Q20 | If all resources used in the production of a product are increased by 20 percent andoutput increases by 20 percent, then there must be:
Q21 | Which of the following statements best describes the general form of a production function: (i) It is a purely technological relationship between quantities of input and quantities of output. (ii) It represents the technology of an organisation, sector of an economy.iii) Prices of inputs or of the output do not enter into the production function. (iv) It is a flow concept describing the transformation of inputs into output per unitof time.
Q22 | Which of the following statements describes the presence of diminishingreturns. Holding at least one factor constant …....
Q23 | Which of the following statements describes increasing returns to scale:
Q24 | Economies of scale exist if:
Q25 | Whenever marginal product is declining with increasing use of an input,