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

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 # 2

Which one is the small scale production.

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

Question # 3

When total product rises marginal product.

Remains the same A
Falls B
Also rises C
None of the three D

Question # 4

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

Zero A
Positive B
Negative C
Rising 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

The law of variable proportions was presented by.

Jevens A
Rayon B
Hicks C
Valentine D

Question # 7

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 # 8

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 # 9

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 # 10

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 # 11

The production function relates to

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

Question # 12

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 # 13

When MP is zero, TP is

minimum A
maximum B
rising C
falling D

Question # 14

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 # 15

When average product falls marginal product

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

Question # 16

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 # 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

When total product falls, marginal product is.

Zero A
Positive B
Negative C
Falling D

Question # 19

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

AP > MP A
AP = MP B
AP < MP C
AP = MP = 0 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	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
2	The law of variable proportions was presented by.	A. Jevens B. Rayon C. Hicks D. Valentine
3	Marginal product indicates rate of change of	A. total product B. average product C. variable product D. all of the above
4	Law of diminishing returns applies more in:	A. Industry B. Agriculture C. Mining D. Construction
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	When business expands beyond its optimum level what type of economics will it be getting.	A. Diseconomies B. Internal economies C. External economies D. Maanagerial economics
7	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
8	The slopes of average and marginal products curves are always zero under:	A. Law of increasing returns B. Law of diminishing returns C. Law of constant returns D. Law of variable propoitions
9	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
10	The production function relates to	A. cost of output B. cost of input C. output to input D. demand to output

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Economics Ics Part 1 English Medium Chapter 11 Online Test

Law of decreasing returns generates

Which one is the small scale production.

When total product rises marginal product.

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

Law of diminishing returns is a universal law as:

The law of variable proportions was presented by.

Economies and diseconomies of scale determine the shape of

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

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

An important factor which promotes large scale production is:

The production function relates to

When diseconomies of scale outweigh economies of scale the

When MP is zero, TP is

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

When average product falls marginal product

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

during short period, diminishing returns may follow because

When total product falls, marginal product is.

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

In law of diminishing returns at least one factor

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