11th class Economics chapter 11 online mcq test with answers for ICS part 1 Economics chapter 11 (Scale of Production and Laws of Returns)

Question # 1

The maximum point of TP curve is at quantity of labour where

Average physical product of labour is equal to 1 A
MPP of labour is at its maximum B
curves of APP and MPP of labour intersect C
MPP of labour is zero D

Question # 2

When total product falls, marginal product is.

Zero A
Positive B
Negative C
Falling D

Question # 3

Law of diminishing returns applies more in:

Industry A
Agriculture B
Mining C
Construction D

Question # 4

An important factor which promotes large scale production is:

Extant of market A
Revolutionary changes in social life B
Culture and civilization C
All the three D

Question # 5

Internal economies of scale include

risk-bearing economics A
trade mark B
managerial economies C
a and c of above D

Question # 6

Commercial economics are a pat of:

Internal economics A
External economics B
Economies of scale C
None of the three D

Question # 7

Which of the following is example of external economies of scale?

Discount on purchases of raw materials A
Technical progress leads to development of machines at low price B
Hiring of specialized staff due to increase in scale of production C
A firm starts producing by products D

Question # 8

during short period, diminishing returns may follow because

quantity of labour is fixed A
quality of labour is fixed B
quantity of capital is fixed C
quantity of any one factor is fixed D

Question # 9

The law of variable proportions was presented by.

David Ricords A
Alfred Marshall B
W.J.L. Ryan C
Pareto D

Question # 10

When MP curve cuts AP curve, the AP is at its.

Lowest point A
Highest point B
Neither of the two C
Eighter of the two D

Question # 11

Economies of scale

occur when increase in input less than proportionate increase in output A
suggest that firm's marginal cost curve lies above its average cost curve B
suggest that the firm's marginal cost curve is declining C
occur when average cost is falling D

Question # 12

Economics of scale are of two kinds

temporary and permanent A
internal and external B
managerial and industrial C
natural and artificial D

Question # 13

Which one is the small scale production.

Bata shoe factory A
A barber shop B
kohinoor Textile Industries C
Sufi soap D

Question # 14

When total product (TP) reaches its maximum, Marginal product (MP) is_

Zero A
Positive B
Negative C
Rising D

Question # 15

In production of goods, negative returns in the short run imply that

average product is negative A
total product is negative B
marginal product is negative C
marginal cost is falling D

Question # 16

Law of decreasing returns generates

law of economic growth A
law of increasing costs B
law of variable costs C
law of decreasing costs D

Question # 17

Which one is the third stage of production under law of variable proportions

Decreasing average returns A
Increasing average return B
Negative marginal return C
Increasing marginal return D

Question # 18

If in a production process, all inputs are increased by 10% and output increase by less than 10%, then it is called

economies of scale A
diseconomies of scale B
diminishing marginal returns C
negative economies D

Question # 19

In the second stage of the law of variable of proportions the average product:

Rises A
Remains constant B
Falls C
None of the three D

Question # 20

In law of diminishing returns at least one factor

must be constant A
must be owned by the firm B
must be purchasable C
must be efficient D

Sr.#	Question	Answer
1	The production function relates to	A. cost of output B. cost of input C. output to input D. demand to output
2	If in a production process, all inputs are increased by 10% and output increase by less than 10%, then it is called	A. economies of scale B. diseconomies of scale C. diminishing marginal returns D. negative economies
3	Law of diminishing returns applies more in:	A. Industry B. Agriculture C. Mining D. Construction
4	Which of the following is example of external economies of scale?	A. Discount on purchases of raw materials B. Technical progress leads to development of machines at low price C. Hiring of specialized staff due to increase in scale of production D. A firm starts producing by products
5	When diseconomies of scale outweigh economies of scale the	A. long run AC curve rises B. marginal cost falls C. long run ATC curve falls D. AVC falls
6	The law of variable proportions was presented by.	A. Jevens B. Rayon C. Hicks D. Valentine
7	The law of increasing returns is also known as:	A. Law of increasing cost B. Law of diminishing cost C. Law of constant cost D. None of the three
8	The maximum point of TP curve is at quantity of labour where	A. Average physical product of labour is equal to 1 B. MPP of labour is at its maximum C. curves of APP and MPP of labour intersect D. MPP of labour is zero
9	Commercial economics are a pat of:	A. Internal economics B. External economics C. Economies of scale D. None of the three
10	Which one will determine scale of production .	A. Financial resources B. Production techniques C. Extant of the market D. All the above

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Economics Ics Part 1 English Medium Chapter 11 Online Test

The maximum point of TP curve is at quantity of labour where

When total product falls, marginal product is.

Law of diminishing returns applies more in:

An important factor which promotes large scale production is:

Internal economies of scale include

Commercial economics are a pat of:

Which of the following is example of external economies of scale?

during short period, diminishing returns may follow because

The law of variable proportions was presented by.

When MP curve cuts AP curve, the AP is at its.

Economies of scale

Economics of scale are of two kinds

Which one is the small scale production.

When total product (TP) reaches its maximum, Marginal product (MP) is_

In production of goods, negative returns in the short run imply that

Law of decreasing returns generates

Which one is the third stage of production under law of variable proportions

If in a production process, all inputs are increased by 10% and output increase by less than 10%, then it is called

In the second stage of the law of variable of proportions the average product:

In law of diminishing returns at least one factor

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