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Online Tests
Economics Ics Part 1 English Medium Chapter 11 Online Test MCQs With Answers
Question # 1
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
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Question # 2
Which one is the small scale production.
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Bata shoe factory
A barber shop
kohinoor Textile Industries
Sufi soap
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Question # 3
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
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Question # 4
If in a production process, all inputs are increased by 10% and output increase by less than 10%, then it is called
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economies of scale
diseconomies of scale
diminishing marginal returns
negative economies
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Question # 5
When average product falls marginal product
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Rises
Also falls
Remain equal to average product
Does not change
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Question # 6
Commercial economics are a pat of:
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Internal economics
External economics
Economies of scale
None of the three
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Question # 7
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
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Question # 8
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
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Question # 9
Internal economies of scale include
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risk-bearing economics
trade mark
managerial economies
a and c of above
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Question # 10
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
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Question # 11
When total product (TP) reaches its maximum, Marginal product (MP) is_
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Zero
Positive
Negative
Rising
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Question # 12
The government constructed a new water reservoir for the purpose of irrigation; this might be taken as
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increase in supply of capital
increase in supply of land
increase in supply of land and supply of capital
none of these
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Question # 13
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
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Question # 14
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
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Question # 15
Which of the following saying describes diminishing marginal returns in the short run?
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When the cat is away, the mouse will play
Too many cooks spoil the broth
A rolling stone gathers no moss
A stitch in time saves nine
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Question # 16
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
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Question # 17
The concept of internal and external economics was given by.
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Adam Smith
Robbins
J.M.Keynes
Alfred Marshall
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Question # 18
Laws of return apply to firms working in
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perfect competition
monopoly
small firm
all kinds of market situations
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Question # 19
Which one will determine scale of production .
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Financial resources
Production techniques
Extant of the market
All the above
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Question # 20
When average product (AP) and marginal product (MP) are rising.
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AP > MP
AP = MP
AP < MP
AP = MP = 0
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Question # 21
The production function relates to
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cost of output
cost of input
output to input
demand to output
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