TNPSC Economics Gk | Quiz | MCQ| Online Test | Objective Questions - 1

Question: 1

____ is a functional relationship between cost and output.

(A) Revenue function

(B) Output function

(C) Cost function

(D) Production function

Ans: C

Cost function

Question: 2

____ are those costs which are independent of output.

(A) Variable costs

(B) Fixed costs

(C) Real costs

(D) Social costs

Ans: B

Fixed costs

Question: 3

____ is the addition made to the total revenue by selling one more unit of a commodity.

(A) Average revenue

(B) Marginal revenue

(C) Total cost

(D) Total revenue

Ans: B

Marginal revenue

Question: 4

The ‘U’ shape of the marginal cost curve is determined by the

(A) Law of diminishing marginal utility

(B) Law of returning to scale

(C) Law of variable proportions

(D) Is-quant

Ans: C

Law of variable proportions

Question: 5

Average fixed cost is obtained by dividing

(A) TC/Q

(B) TFC/Q

(C) TVC/Q

(D) None

Ans: B

TFC/Q

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