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

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 # 2

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 # 3

Economics of scale are of two kinds

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

Question # 4

Which one is the small scale production.

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

Question # 5

When MP is zero, TP is

minimum A
maximum B
rising C
falling D

Question # 6

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 # 7

Marginal product indicates rate of change of

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

When total product rises marginal product.

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

Question # 10

The law of variable proportions was presented by.

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

Question # 11

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 # 12

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 # 13

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

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

Question # 14

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

Zero A
Positive B
Negative C
Rising D

Question # 15

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 # 16

If in a production process, all inputs are increased by 10% and output increase by less than 10%, then it is called

economies of scale A
diseconomies of scale B
diminishing marginal returns C
negative economies D

Question # 17

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 # 18

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 # 19

Which one will determine scale of production .

Financial resources A
Production techniques B
Extant of the market C
All the above 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	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
2	Laws of return apply to firms working in	A. perfect competition B. monopoly C. small firm D. all kinds of market situations
3	When average product (AP) and marginal product (MP) are rising.	A. AP > MP B. AP = MP C. AP < MP D. AP = MP = 0
4	Which one will determine scale of production .	A. Financial resources B. Production techniques C. Extant of the market D. All the above
5	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
6	When total product rises marginal product.	A. Remains the same B. Falls C. Also rises D. None of the three
7	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
8	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
9	The maximum point of TP curve is at quantity of labour where	A. Average physical product of labour is equal to 1 B. MPP of labour is at its maximum C. curves of APP and MPP of labour intersect D. MPP of labour is zero
10	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

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

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

Economics of scale are of two kinds

Which one is the small scale production.

When MP is zero, TP 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

Marginal product indicates rate of change of

An important factor which promotes large scale production is:

When total product rises marginal product.

The law of variable proportions was presented by.

Economies and diseconomies of scale determine the shape of

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

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

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

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

If in a production process, all inputs are increased by 10% and output increase by less than 10%, then it is called

Law of decreasing returns generates

Law of diminishing returns is a universal law as:

Which one will determine scale of production .

Marginal product curve intersects average product curve when AP curve is

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