Question # 1

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 concept of internal and external economics was given by.

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Adam Smith

Robbins

J.M.Keynes

Alfred Marshall

Marginal product indicates rate of change of

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total product

average product

variable product

all of the above

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

during short period, diminishing returns may follow because

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quantity of labour is fixed

quality of labour is fixed

quantity of capital is fixed

quantity of any one factor is fixed

When total product rises marginal product.

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Remains the same

Falls

Also rises

None of the three

When MP is zero, TP is

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minimum

maximum

rising

falling

Which one is the small scale production.

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Bata shoe factory

A barber shop

kohinoor Textile Industries

Sufi soap

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

Law of diminishing returns is a universal law as:

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It does apply in all aspects of an economy.

Basically it applies in agriculture.

It is hard to check it.

It applies in industry as well

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

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Law of increasing returns

Law of diminishing returns

Law of constant returns

Law of variable propoitions

The law of variable proportions was presented by.

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David Ricords

Alfred Marshall

W.J.L. Ryan

Pareto

Law of decreasing returns generates

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law of economic growth

law of increasing costs

law of variable costs

law of decreasing costs

Internal economies of scale include

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risk-bearing economics

trade mark

managerial economies

a and c of above

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

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

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MP of labour is grater than AP of labour

additional workers are more efficient

MP and AP are equal

AP is maximum

When average product falls marginal product

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Rises

Also falls

Remain equal to average product

Does not change

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

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average product is negative

total product is negative

marginal product is negative

marginal cost is falling

Commercial economics are a pat of:

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Internal economics

External economics

Economies of scale

None of the three

Law of diminishing returns applies more in:

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Industry

Agriculture

Mining

Construction

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

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