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

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

Question # 2

Marginal product indicates rate of change of

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

Question # 3

Internal economies of scale include

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

Question # 4

Laws of return apply to firms working in

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

Question # 5

When MP is zero, TP is

minimum A
maximum B
rising C
falling D

Question # 6

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 # 7

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 # 8

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 # 9

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 # 10

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 # 11

The concept of internal and external economics was given by.

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

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 # 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

When total product falls, marginal product is.

Zero A
Positive B
Negative C
Falling D

Question # 16

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 # 17

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 # 18

Commercial economics are a pat of:

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

Question # 19

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 # 20

Law of diminishing returns applies more in:

Industry A
Agriculture B
Mining C
Construction D

Sr.#	Question	Answer
1	Law of diminishing returns applies more in:	A. Industry B. Agriculture C. Mining D. Construction
2	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
3	during short period, diminishing returns may follow because	A. quantity of labour is fixed B. quality of labour is fixed C. quantity of capital is fixed D. quantity of any one factor is fixed
4	When total product (TP) reaches its maximum, Marginal product (MP) is_	A. Zero B. Positive C. Negative D. Rising
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	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
7	When total product rises marginal product.	A. Remains the same B. Falls C. Also rises D. None of the three
8	When total product falls, marginal product is.	A. Zero B. Positive C. Negative D. Falling
9	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
10	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

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Economics Ics Part 1 English Medium Chapter 11 Online Test

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

Marginal product indicates rate of change of

Internal economies of scale include

Laws of return apply to firms working in

When MP is zero, TP is

The law of increasing returns is also known as:

An important factor which promotes large scale production is:

When diseconomies of scale outweigh economies of scale the

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

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

The concept of internal and external economics was given by.

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

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

Which one will determine scale of production .

When total product falls, marginal product is.

during short period, diminishing returns may follow because

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

Commercial economics are a pat of:

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

Law of diminishing returns applies more in:

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