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

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 # 2

Which one is the small scale production.

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

Question # 3

Marginal product curve intersects average product curve when AP curve is

minimum A
maximum B
rising C
falling D

Question # 4

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 # 5

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 # 6

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 # 7

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 # 8

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 # 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 law of increasing returns is also known as:

Law of increasing cost A
Law of diminishing cost B
Law of constant cost C
None of the three D

Question # 11

When total product falls, marginal product is.

Zero A
Positive B
Negative C
Falling D

Question # 12

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 # 13

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 # 14

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 # 15

Commercial economics are a pat of:

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

Question # 16

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

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

Question # 17

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 # 18

When MP is zero, TP is

minimum A
maximum B
rising C
falling D

Question # 19

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 # 20

Internal economies of scale include

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

Sr.#	Question	Answer
1	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	A. MP of labour is grater than AP of labour B. additional workers are more efficient C. MP and AP are equal D. AP is maximum
2	Internal economies of scale include	A. risk-bearing economics B. trade mark C. managerial economies D. a and c of above
3	Which one will determine scale of production .	A. Financial resources B. Production techniques C. Extant of the market D. All the above
4	Which one is the small scale production.	A. Bata shoe factory B. A barber shop C. kohinoor Textile Industries D. Sufi soap
5	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
6	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
7	When MP curve cuts AP curve, the AP is at its.	A. Lowest point B. Highest point C. Neither of the two D. Eighter of the two
8	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
9	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
10	The production function relates to	A. cost of output B. cost of input C. output to input D. demand to output

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Economies of scale

Which one is the small scale production.

Marginal product curve intersects average product curve when AP curve is

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

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

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

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

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

When average product falls marginal product

The law of increasing returns is also known as:

When total product falls, marginal product is.

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

during short period, diminishing returns may follow because

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

Commercial economics are a pat of:

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

When diseconomies of scale outweigh economies of scale the

When MP is zero, TP is

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

Internal economies of scale include

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