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

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 # 3

The production function relates to

cost of output A
cost of input B
output to input C
demand to output 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 total product (TP) reaches its maximum, Marginal product (MP) is_

Zero A
Positive B
Negative C
Rising D

Question # 6

Law of diminishing returns applies more in:

Industry A
Agriculture B
Mining C
Construction 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

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 # 9

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 # 10

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

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

Question # 11

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 # 12

The concept of internal and external economics was given by.

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

Question # 13

Economics of scale are of two kinds

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

Question # 14

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 # 15

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 # 16

When MP is zero, TP is

minimum A
maximum B
rising C
falling D

Question # 17

When average product falls marginal product

Rises A
Also falls B
Remain equal to average product C
Does not change D

Question # 18

The law of variable proportions was presented by.

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

When total product falls, marginal product is.

Zero A
Positive B
Negative C
Falling D

Sr.#	Question	Answer
1	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
2	Which one is the third stage of production under law of variable proportions	A. Decreasing average returns B. Increasing average return C. Negative marginal return D. Increasing marginal return
3	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
4	When MP is zero, TP is	A. minimum B. maximum C. rising D. falling
5	When business expands beyond its optimum level what type of economics will it be getting.	A. Diseconomies B. Internal economies C. External economies D. Maanagerial economics
6	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
7	When average product falls marginal product	A. Rises B. Also falls C. Remain equal to average product D. Does not change
8	The concept of internal and external economics was given by.	A. Adam Smith B. Robbins C. J.M.Keynes D. Alfred Marshall
9	When average product (AP) and marginal product (MP) are rising.	A. AP > MP B. AP = MP C. AP < MP D. AP = MP = 0
10	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

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When diseconomies of scale outweigh economies of scale the

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

The production function relates to

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

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

Law of diminishing returns applies more in:

Marginal product indicates rate of change of

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

Law of diminishing returns is a universal law as:

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

The law of increasing returns is also known as:

The concept of internal and external economics was given by.

Economics of scale are of two kinds

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

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

When MP is zero, TP is

When average product falls marginal product

The law of variable proportions was presented by.

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

When total product falls, marginal product is.

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