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 falls, marginal product is.

Zero A
Positive B
Negative C
Falling D

Question # 2

When total product rises marginal product.

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

Question # 3

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 # 4

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

Zero A
Positive B
Negative C
Rising D

Question # 5

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 # 6

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 # 7

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 # 8

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

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

Question # 9

Commercial economics are a pat of:

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

Question # 10

Laws of return apply to firms working in

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

Question # 11

When MP is zero, TP is

minimum A
maximum B
rising C
falling D

Question # 12

Which one will determine scale of production .

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

Question # 13

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 # 14

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 # 15

The law of variable proportions was presented by.

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

Question # 16

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 # 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

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 # 19

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 # 20

Marginal product curve intersects average product curve when AP curve is

minimum A
maximum B
rising C
falling D

Sr.#	Question	Answer
1	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
2	Which one will determine scale of production .	A. Financial resources B. Production techniques C. Extant of the market D. All the above
3	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
4	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
5	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
6	Marginal product indicates rate of change of	A. total product B. average product C. variable product D. all of the above
7	The law of variable proportions was presented by.	A. Jevens B. Rayon C. Hicks D. Valentine
8	Economics of scale are of two kinds	A. temporary and permanent B. internal and external C. managerial and industrial D. natural and artificial
9	When total product rises marginal product.	A. Remains the same B. Falls C. Also rises D. None of the three
10	When total product (TP) reaches its maximum, Marginal product (MP) is_	A. Zero B. Positive C. Negative D. Rising

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