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

Which one will determine scale of production .

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

Question # 2

When total product falls, marginal product is.

Zero A
Positive B
Negative C
Falling 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 (AP) and marginal product (MP) are rising.

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

Question # 5

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 # 6

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 # 7

The law of variable proportions was presented by.

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

Question # 8

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 # 9

When average product falls marginal product

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

Question # 10

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 # 11

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 # 12

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 # 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

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 # 16

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 # 17

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 # 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 MP is zero, TP is

minimum A
maximum B
rising C
falling D

Question # 20

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

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	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
3	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
4	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
5	When average product (AP) and marginal product (MP) are rising.	A. AP > MP B. AP = MP C. AP < MP D. AP = MP = 0
6	Law of decreasing returns generates	A. law of economic growth B. law of increasing costs C. law of variable costs D. law of decreasing costs
7	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
8	When average product falls marginal product	A. Rises B. Also falls C. Remain equal to average product D. Does not change
9	When MP is zero, TP is	A. minimum B. maximum C. rising D. falling
10	Economies of scale	A. occur when increase in input less than proportionate increase in output B. suggest that firm's marginal cost curve lies above its average cost curve C. suggest that the firm's marginal cost curve is declining D. occur when average cost is falling

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Economics Ics Part 1 English Medium Chapter 11 Online Test

Which one will determine scale of production .

When total product falls, marginal product is.

Which one is the small scale production.

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

during short period, diminishing returns may follow because

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

The law of variable proportions was presented by.

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

When average product falls marginal product

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

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

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

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

Marginal product indicates rate of change of

In law of diminishing returns at least one factor

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

An important factor which promotes large scale production is:

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

When MP is zero, TP is

Economies of scale

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