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

Zero A
Positive B
Negative C
Rising D

Question # 2

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 # 3

When total product falls, marginal product is.

Zero A
Positive B
Negative C
Falling D

Question # 4

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 # 5

When MP is zero, TP is

minimum A
maximum B
rising C
falling D

Question # 6

The law of variable proportions was presented by.

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

Question # 7

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 # 8

Economies and diseconomies of scale determine the shape of

long run AC curve A
short run AC B
average fixed cost C
none of the above D

Question # 9

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 # 10

The concept of internal and external economics was given by.

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

Question # 11

Laws of return apply to firms working in

perfect competition A
monopoly B
small firm C
all kinds of market situations D

Question # 12

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 # 13

The production function relates to

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

Question # 14

Marginal product curve intersects average product curve when AP curve is

minimum A
maximum B
rising C
falling 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

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 # 17

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 # 18

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 # 19

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 # 20

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

Sr.#	Question	Answer
1	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
2	Economics of scale are of two kinds	A. temporary and permanent B. internal and external C. managerial and industrial D. natural and artificial
3	Marginal product indicates rate of change of	A. total product B. average product C. variable product D. all of the above
4	The concept of internal and external economics was given by.	A. Adam Smith B. Robbins C. J.M.Keynes D. Alfred Marshall
5	Economies and diseconomies of scale determine the shape of	A. long run AC curve B. short run AC C. average fixed cost D. none of the above
6	Internal economies of scale include	A. risk-bearing economics B. trade mark C. managerial economies D. a and c of above
7	The production function relates to	A. cost of output B. cost of input C. output to input D. demand to output
8	Which one is the third stage of production under law of variable proportions	A. Decreasing average returns B. Increasing average return C. Negative marginal return D. Increasing marginal return
9	Laws of return apply to firms working in	A. perfect competition B. monopoly C. small firm D. all kinds of market situations
10	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

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

Economies of scale

When total product falls, marginal product is.

In law of diminishing returns at least one factor

When MP is zero, TP is

The law of variable proportions was presented by.

during short period, diminishing returns may follow because

Economies and diseconomies of scale determine the shape of

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

The concept of internal and external economics was given by.

Laws of return apply to firms working in

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

The production function relates to

Marginal product curve intersects average product curve when AP curve is

When average product falls marginal product

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

Law of decreasing returns generates

Law of diminishing returns is a universal law as:

When diseconomies of scale outweigh economies of scale the

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

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