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 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 # 2

Marginal product indicates rate of change of

total product A
average product B
variable product C
all of the above D

Question # 3

Which one is the small scale production.

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

Question # 4

When average product falls marginal product

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

Question # 5

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 # 6

Which of the following saying describes diminishing marginal returns in the short run?

When the cat is away, the mouse will play A
Too many cooks spoil the broth B
A rolling stone gathers no moss C
A stitch in time saves nine D

Question # 7

The law of variable proportions was presented by.

Jevens A
Rayon B
Hicks C
Valentine D

Question # 8

Commercial economics are a pat of:

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

Question # 9

When diseconomies of scale outweigh economies of scale the

long run AC curve rises A
marginal cost falls B
long run ATC curve falls C
AVC falls D

Question # 10

Marginal product curve intersects average product curve when AP curve is

minimum A
maximum B
rising C
falling D

Question # 11

The production function relates to

cost of output A
cost of input B
output to input C
demand to output D

Question # 12

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 # 13

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 # 14

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 # 15

Law of diminishing returns applies more in:

Industry A
Agriculture B
Mining C
Construction D

Question # 16

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 # 17

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 # 18

Which one will determine scale of production .

Financial resources A
Production techniques B
Extant of the market C
All the above D

Question # 19

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 # 20

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

Zero A
Positive B
Negative C
Rising D

Sr.#	Question	Answer
1	Laws of return apply to firms working in	A. perfect competition B. monopoly C. small firm D. all kinds of market situations
2	When total product rises marginal product.	A. Remains the same B. Falls C. Also rises D. None of the three
3	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
4	When MP is zero, TP is	A. minimum B. maximum C. rising D. falling
5	The concept of internal and external economics was given by.	A. Adam Smith B. Robbins C. J.M.Keynes D. Alfred Marshall
6	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
7	The production function relates to	A. cost of output B. cost of input C. output to input D. demand to output
8	The law of variable proportions was presented by.	A. Jevens B. Rayon C. Hicks D. Valentine
9	Which of the following saying describes diminishing marginal returns in the short run?	A. When the cat is away, the mouse will play B. Too many cooks spoil the broth C. A rolling stone gathers no moss D. A stitch in time saves nine
10	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

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Economics Ics Part 1 English Medium Chapter 11 Online Test

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

Marginal product indicates rate of change of

Which one is the small scale production.

When average product falls marginal product

Law of diminishing returns is a universal law as:

Which of the following saying describes diminishing marginal returns in the short run?

The law of variable proportions was presented by.

Commercial economics are a pat of:

When diseconomies of scale outweigh economies of scale the

Marginal product curve intersects average product curve when AP curve is

The production function relates to

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

during short period, diminishing returns may follow because

An important factor which promotes large scale production is:

Law of diminishing returns applies more in:

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

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

Which one will determine scale of production .

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

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

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