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

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 # 2

When average product (AP) and marginal product (MP) are rising.

AP > MP A
AP = MP B
AP < MP C
AP = MP = 0 D

Question # 3

The concept of internal and external economics was given by.

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

Question # 4

When total product falls, marginal product is.

Zero A
Positive B
Negative C
Falling D

Question # 5

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 # 6

The slopes of average and marginal products curves are always zero under:

Law of increasing returns A
Law of diminishing returns B
Law of constant returns C
Law of variable propoitions D

Question # 7

Marginal product curve intersects average product curve when AP curve is

minimum A
maximum B
rising C
falling D

Question # 8

The law of variable proportions was presented by.

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

Question # 9

The production function relates to

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

Question # 10

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 # 11

Which one is the small scale production.

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

Question # 12

Laws of return apply to firms working in

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

Question # 13

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 # 14

Marginal product indicates rate of change of

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

Question # 15

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 # 16

Internal economies of scale include

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

Question # 17

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 # 18

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 # 19

When total product rises marginal product.

Remains the same A
Falls B
Also rises C
None of the three 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	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
2	An important factor which promotes large scale production is:	A. Extant of market B. Revolutionary changes in social life C. Culture and civilization D. All the three
3	Internal economies of scale include	A. risk-bearing economics B. trade mark C. managerial economies D. a and c of above
4	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
5	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
6	The law of variable proportions was presented by.	A. David Ricords B. Alfred Marshall C. W.J.L. Ryan D. Pareto
7	Law of diminishing returns applies more in:	A. Industry B. Agriculture C. Mining D. Construction
8	The concept of internal and external economics was given by.	A. Adam Smith B. Robbins C. J.M.Keynes D. Alfred Marshall
9	When total product (TP) reaches its maximum, Marginal product (MP) is_	A. Zero B. Positive C. Negative D. Rising
10	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

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