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

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 # 2

When business expands beyond its optimum level what type of economics will it be getting.

Diseconomies A
Internal economies B
External economies C
Maanagerial economics D

Question # 3

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

Question # 4

Marginal product curve intersects average product curve when AP curve is

minimum A
maximum B
rising C
falling D

Question # 5

When total product falls, marginal product is.

Zero A
Positive B
Negative C
Falling 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

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 # 8

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 # 9

Internal economies of scale include

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

Question # 10

When a firm using a fixed amount of land and capital takes on more workers, it finds that marginal product(MP) of labour falls but the average product(AP) of labour rises. This can be explained by the factors that

MP of labour is grater than AP of labour A
additional workers are more efficient B
MP and AP are equal C
AP is maximum D

Question # 11

The concept of internal and external economics was given by.

Adam Smith A
Robbins B
J.M.Keynes C
Alfred Marshall D

Question # 12

The law of variable proportions was presented by.

Jevens A
Rayon B
Hicks C
Valentine D

Question # 13

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 # 14

The law of increasing returns is also known as:

Law of increasing cost A
Law of diminishing cost B
Law of constant cost C
None of the three D

Question # 15

When average product falls marginal product

Rises A
Also falls B
Remain equal to average product C
Does not change D

Question # 16

The government constructed a new water reservoir for the purpose of irrigation; this might be taken as

increase in supply of capital A
increase in supply of land B
increase in supply of land and supply of capital C
none of these D

Question # 17

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 # 18

Economics of scale are of two kinds

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

Question # 19

Law of diminishing returns is a universal law as:

It does apply in all aspects of an economy. A
Basically it applies in agriculture. B
It is hard to check it. C
It applies in industry as well D

Question # 20

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

Sr.#	Question	Answer
1	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
2	In production of goods, negative returns in the short run imply that	A. average product is negative B. total product is negative C. marginal product is negative D. marginal cost is falling
3	Which one will determine scale of production .	A. Financial resources B. Production techniques C. Extant of the market D. All the above
4	Law of diminishing returns is a universal law as:	A. It does apply in all aspects of an economy. B. Basically it applies in agriculture. C. It is hard to check it. D. It applies in industry as well
5	Economics of scale are of two kinds	A. temporary and permanent B. internal and external C. managerial and industrial D. natural and artificial
6	The government constructed a new water reservoir for the purpose of irrigation; this might be taken as	A. increase in supply of capital B. increase in supply of land C. increase in supply of land and supply of capital D. none of these
7	Law of diminishing returns applies more in:	A. Industry B. Agriculture C. Mining D. Construction
8	In law of diminishing returns at least one factor	A. must be constant B. must be owned by the firm C. must be purchasable D. must be efficient
9	Laws of return apply to firms working in	A. perfect competition B. monopoly C. small firm D. all kinds of market situations
10	In the second stage of the law of variable of proportions the average product:	A. Rises B. Remains constant C. Falls D. None of the three

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MCQ's Test For Chapter 11 "Economics Ics Part 1 English Medium Chapter 11 Online Test"

Economics Ics Part 1 English Medium Chapter 11 Online Test

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

When business expands beyond its optimum level what type of economics will it be getting.

In law of diminishing returns at least one factor

Marginal product curve intersects average product curve when AP curve is

When total product falls, marginal product is.

Commercial economics are a pat of:

An important factor which promotes large scale production is:

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

Internal economies of scale include

When a firm using a fixed amount of land and capital takes on more workers, it finds that marginal product(MP) of labour falls but the average product(AP) of labour rises. This can be explained by the factors that

The concept of internal and external economics was given by.

The law of variable proportions was presented by.

Law of decreasing returns generates

The law of increasing returns is also known as:

When average product falls marginal product

The government constructed a new water reservoir for the purpose of irrigation; this might be taken as

during short period, diminishing returns may follow because

Economics of scale are of two kinds

Law of diminishing returns is a universal law as:

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

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