Economics most important question-answer:

1. Net profit is computed in the?
   Answer: Profit and loss account
2. The Average Variable Cost is the result of?
   Answer: Total variable cost and output
3. The bowed shape of the production possibilities curve illustrates?
   Answer: Law of Increasing Marginal Cost
4. When fixed cost doesn't change with the change in output?
   Answer: All I, II and III
5. Costs that vary with production are?
   Answer: Marginal costs
6. Who suggested product, pricing, place, promotion all these in a company represent ‘Market Mix’?
   Answer: Neil Borden
7. Which of the following is not correctly matched?
   Answer: APP rises continuously - till APP and MPP is both equal
8. The law of diminishing returns assumes?
   Answer: Some factors of production are fixed
9. The law of diminishing returns applies more generally to?
   Answer: Agriculture
10. When TPP is maximum, the MPP will be?
    Answer: II. Zero
11. If marginal product is below average product?
    Answer: Average product will fall
12. Iso-revenue line is a?
    Answer: Straight line
13. A farmer having more than ten hectares to irrigate the land is known as?
    Answer: Only II (Big farmers)
14. Export-Import bank was established on 1st January?
    Answer: 1982
15. Average fixed cost is equal to?
    Answer: Total fixed cost/output
16. Which one of the following is not a physical factor affecting the type of farming?
    Answer: Labour
17. The reward of enterprises is called?
    Answer: Profit
18. The cost of production can be minimized by using the principle of?
    Answer: Law of least-cost combinations
19. When a large number of sellers deal in heterogeneous and differentiated form of a commodity, it is called?
    Answer: Monopolistic competition