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

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 # 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

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 # 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

Marginal product curve intersects average product curve when AP curve is

minimum A
maximum B
rising C
falling D

Question # 7

When MP is zero, TP is

minimum A
maximum B
rising C
falling D

Question # 8

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 # 9

The concept of internal and external economics was given by.

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

Question # 10

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 # 11

Commercial economics are a pat of:

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

Question # 12

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 # 13

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 # 14

Internal economies of scale include

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

Question # 15

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 # 16

Marginal product indicates rate of change of

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

Question # 17

Law of diminishing returns applies more in:

Industry A
Agriculture B
Mining C
Construction D

Question # 18

When total product falls, marginal product is.

Zero A
Positive B
Negative C
Falling D

Question # 19

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 # 20

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

Sr.#	Question	Answer
1	Which one is the small scale production.	A. Bata shoe factory B. A barber shop C. kohinoor Textile Industries D. Sufi soap
2	When MP is zero, TP is	A. minimum B. maximum C. rising D. falling
3	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
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	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
6	The law of variable proportions was presented by.	A. Jevens B. Rayon C. Hicks D. Valentine
7	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
8	The concept of internal and external economics was given by.	A. Adam Smith B. Robbins C. J.M.Keynes D. Alfred Marshall
9	The law of variable proportions was presented by.	A. David Ricords B. Alfred Marshall C. W.J.L. Ryan D. Pareto
10	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

Latest Educational News Stories

Pakistan's Largest Database of Colleges and Universities

BS Programs

University Past Papers

University Results

Exam Results 2024

Study Abroad Programs and Opportunities for Pakistani Students

First Year Economics Chapter 11 Online MCQ Test for 1st Year Economics Chapter 11 (Scale of Production and Laws of Returns)

ICS Part 1 Economics Chapter 11 Test

ICS Part 1 Economics Chapter Wise Test

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_

during short period, diminishing returns may follow because

Which one is the small scale production.

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

Law of diminishing returns is a universal law as:

Marginal product curve intersects average product curve when AP curve is

When MP is zero, TP is

An important factor which promotes large scale production is:

The concept of internal and external economics was given by.

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

Commercial economics are a pat of:

Economies of scale

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

Internal economies of scale include

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

Marginal product indicates rate of change of

Law of diminishing returns applies more in:

When total product falls, marginal product is.

Economies and diseconomies of scale determine the shape of

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

Prepare Complete Set Wise Chapter 11 "Economics Ics Part 1 English Medium Chapter 11 Online Test" MCQs Online With Answers

Set 1

Set 2

Topic Test

ICS Part 1 Economics Chapter 11 MCQs Test

Top Scorers Of Chapter 11 "Economics Ics Part 1 English Medium Chapter 11 Online Test" MCQ`s Test

ICS Part 1 Economics Chapter 11 Important MCQ's

Test Questions

Share your comments & questions here