43
If a person receives a higher wage than would be necessary to induce him to work, he is said to be receiving
- A. rent
- B. profit
- C. interest
- D. surtax income
44
A firm achieves least cost in production by substituting factors until
- A. their factor prices are equal
- B. their marginal-physical products are each equal to their factor prices
- C. their marginal-physical products are each zero
- D. the ratio of their marginal-physical products equals the ratio of their prices
45
Production in Economics can be defined as the
- A. totality of producing, buying and consuming
- B. transformation of raw materials and services in order to provide ultimate utility
- C. transformation of raw materials and services in order to make maximum profit
- D. production of goods and services for consumption
46
The degree of specialization is limited by the
- A. avalibility of specialized skills and machinery
- B. marginal cost exceeding marginal revenue
- C. extent of the market
- D. disadvantage of standardization
47
A firm is at its optimum size when?
- A. it produce the greatest output at a minimum cost
- B. it has a motive to increase output
- C. marginal cost equals marginal revenue
- D. marginal cost is less than marginal revenue
48
Under normal circumstances, the concept of consumers sovereignty implies that
- A. the consumer and not the producer owns the means of production
- B. the producer and not the consumer determines what is to be produced
- C. the consumer and not the producer determines what is to be produced
- D. both the consumer and the producer determines what should be produced
49
Which of these is the real cost of satisfying any want in the sense of the alternative that has to be foregone?
- A. Variable cost
- B. opportunity cost
- C. Total cost
- D. Prime cost
50
Choice in economic life is necessitated by?
- A. the need to construct scale of preference
- B. the opportunity cost of consumption
- C. unlimited wants
- D. scarcity of economic resources