Econ Online

Economics Online Test

the quiz contains 10 objectives, click submit when answered all questions

1.

Production Can Be Defined As;

Is the extra earningsfor the factor of productionthatis over and above the transfer earnings/ Supply pricethatis inelastic in the short runbut elastic in the long rune.g.the supply of Doctorsin the short run

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Itis the creating of utilityin goods to satisfy human wants

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Is payment to the factor of productionespecially landdue to its relative scarcity

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Is the quantityof output that a unitof labour can produce in a given period of time

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2.

The Law Of RETURN TO SCALE states that;

When there are proportionate changes in the amount of input, the amount of output also changes

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When there are proportionate changes in the amount of input, the amount of input always changes

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When there are proportionate changes in the amount of input, the amount of output doesnot changes

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When there are proportionate changes in the amount of input, the amount of input does not changes

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3.

Location of a firm refers to;

a place or a site where a firm can be suitable

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Option 2a place or a site where a firm is to be situated

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A place or a site where a firm is situated

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Area without firm

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4.

Which one of the following is a characteristic of monopolistic competition

There is lack of uniformity. This means that firms are of different sizes whereby some are more powerful than others.

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There are a few firms participating in the market, and each of them controls a substantial share of the market

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he products produced are highly differentiated by branding but have close substitutes

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Mainly use unskilled Labour

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5.

Which one of the following is not a stage of production

Primary production

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Quatenary production

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Tertiary production

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Secondary production

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6.

One of the disadvantages of perfect competition is;

There is lack of economies of scale which limits the expansion of the firms.

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It leads to underutilization/under exploitation of natural resources because production is on a very small scale.

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It leads to low economic growth ratelow quantity of output

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It leads to lowtax revenuebecause people in this sector do not pay taxes

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7.

In profit maximization under perfect conditions

MC = TR

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MC = AR

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TR = MR

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MC = MR

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8.

The following are types of profits except

Supernormal

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Normal profits

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Economic profits

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Major profits

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9.

The following are types of revenue, except;

Total Revenue

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Average Revenue

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Marginal Revenue

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Major Revenue

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10.

...............is the total cost per unit of output produced

Average cost

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Net Cost

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Total Cost

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Profit

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