71. The average variable cost curve:
A. Is derived from the average fixed costs
B. Converges with the average cost as output increases
C. Equals the total costs divided by the output
D. Equals revenue minus profits
72. If marginal cost is positive and falling:
A. Total cost is falling
B. Total cost is increasing at a falling rate
C. Total cost is falling at a falling rate
D. Total cost is increasing at an increasing rate
73. If marginal product is below average product:
A. The total product will fall
B. The average product will fall
C. Average variable costs will fall
D. Total revenue will fall
74. If the marginal revenue is less than the marginal cost then to profit maximize a firm should:
A. Reduce output
B. Increase output
C. Leave output where it is
D. Increase costs
75. The largest indirect Tax revenue collection is through
A. Income Tax
B. GST (General Sales Tax)
C. Customs duty
D. Wealth tax
E. None of these
76. Economies of scale means reduction in?
A. Total cost of distribution
B. Total cost of production
C. Unit cost of production
D. Unit cost of distribution
77. When the total product rises at an increasing rate the?
A. Marginal product is rising
B. Marginal product is zero
C. Marginal product is falling
D. Marginal product remains constant
78. Laissez-Faire term is associated with which form of economy?
A. Mixed economy
B. Socialist economy
C. Capitalist economy
D. Command economy
79. Supply of agricultural products is generally?
A. Elastic
B. Inelastic
C. Perfectly elastic
D. Perfectly inelastic
80. Permission given to a bank customer to draw cheques in excess of his current account balance is called?
A. An ordinary loan
B. A personal loan
C. Discounting a bill of exchange
D. An overdraft
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