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 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 # 2

The law of variable proportions was presented by.

Jevens A
Rayon B
Hicks C
Valentine D

Question # 3

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 # 4

Marginal product curve intersects average product curve when AP curve is

minimum A
maximum B
rising C
falling D

Question # 5

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 # 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

Economics of scale are of two kinds

temporary and permanent A
internal and external B
managerial and industrial C
natural and artificial D

Question # 8

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 # 9

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 # 10

The concept of internal and external economics was given by.

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

Question # 11

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 # 12

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 # 13

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 # 14

Which one will determine scale of production .

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

Question # 15

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 # 16

The law of variable proportions was presented by.

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

Question # 17

When total product rises marginal product.

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

Question # 18

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 # 19

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 # 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	Economics of scale are of two kinds	A. temporary and permanent B. internal and external C. managerial and industrial D. natural and artificial
2	Which of the following saying describes diminishing marginal returns in the short run?	A. When the cat is away, the mouse will play B. Too many cooks spoil the broth C. A rolling stone gathers no moss D. A stitch in time saves nine
3	The law of variable proportions was presented by.	A. David Ricords B. Alfred Marshall C. W.J.L. Ryan D. Pareto
4	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
5	Laws of return apply to firms working in	A. perfect competition B. monopoly C. small firm D. all kinds of market situations
6	The production function relates to	A. cost of output B. cost of input C. output to input D. demand to output
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	Marginal product indicates rate of change of	A. total product B. average product C. variable product D. all of the above
9	Internal economies of scale include	A. risk-bearing economics B. trade mark C. managerial economies D. a and c of above
10	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

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Economics Ics Part 1 English Medium Chapter 11 Online Test

When diseconomies of scale outweigh economies of scale the

The law of variable proportions was presented by.

Economies of scale

Marginal product curve intersects average product curve when AP curve is

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

during short period, diminishing returns may follow because

Economics of scale are of two kinds

Law of decreasing returns generates

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

The concept of internal and external economics was given by.

An important factor which promotes large scale production is:

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

Which one will determine scale of production .

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

The law of variable proportions was presented by.

When total product rises marginal product.

The government constructed a new water reservoir for the purpose of irrigation; this might be taken as

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

In law of diminishing returns at least one factor

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