Question # 1

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

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Average physical product of labour is equal to 1

MPP of labour is at its maximum

curves of APP and MPP of labour intersect

MPP of labour is zero

In law of diminishing returns at least one factor

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must be constant

must be owned by the firm

must be purchasable

must be efficient

When average product falls marginal product

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Rises

Also falls

Remain equal to average product

Does not change

Internal economies of scale include

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risk-bearing economics

trade mark

managerial economies

a and c of above

Laws of return apply to firms working in

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perfect competition

monopoly

small firm

all kinds of market situations

The production function relates to

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cost of output

cost of input

output to input

demand to output

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

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Rises

Remains constant

Falls

None of the three

Economies and diseconomies of scale determine the shape of

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long run AC curve

short run AC

average fixed cost

none of the above

The law of increasing returns is also known as:

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Law of increasing cost

Law of diminishing cost

Law of constant cost

None of the three

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

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AP > MP

AP = MP

AP < MP

AP = MP = 0

The concept of internal and external economics was given by.

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Adam Smith

Robbins

J.M.Keynes

Alfred Marshall

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

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Diseconomies

Internal economies

External economies

Maanagerial economics

When total product rises marginal product.

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Remains the same

Falls

Also rises

None of the three

Economics of scale are of two kinds

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temporary and permanent

internal and external

managerial and industrial

natural and artificial

The law of variable proportions was presented by.

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David Ricords

Alfred Marshall

W.J.L. Ryan

Pareto

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

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Lowest point

Highest point

Neither of the two

Eighter of the two

The law of variable proportions was presented by.

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Jevens

Rayon

Hicks

Valentine

When diseconomies of scale outweigh economies of scale the

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long run AC curve rises

marginal cost falls

long run ATC curve falls

AVC falls

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

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Discount on purchases of raw materials

Technical progress leads to development of machines at low price

Hiring of specialized staff due to increase in scale of production

A firm starts producing by products

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

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Zero

Positive

Negative

Rising

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Economics Ics Part 1 English Medium Chapter 11 Online Test MCQs With Answers

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