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Online Tests
Economics Ics Part 1 English Medium Chapter 11 Online Test MCQs With Answers
Question # 1
When average product (AP) and marginal product (MP) are rising.
Choose an answer
AP > MP
AP = MP
AP < MP
AP = MP = 0
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Question # 2
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 # 3
When MP curve cuts AP curve, the AP is at its.
Choose an answer
Lowest point
Highest point
Neither of the two
Eighter of the two
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Question # 4
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 # 5
When total product rises marginal product.
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Remains the same
Falls
Also rises
None of the three
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Question # 6
Law of diminishing returns applies more in:
Choose an answer
Industry
Agriculture
Mining
Construction
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Question # 7
When diseconomies of scale outweigh economies of scale the
Choose an answer
long run AC curve rises
marginal cost falls
long run ATC curve falls
AVC falls
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Question # 8
Marginal product curve intersects average product curve when AP curve is
Choose an answer
minimum
maximum
rising
falling
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Question # 9
Economics of scale are of two kinds
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temporary and permanent
internal and external
managerial and industrial
natural and artificial
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Question # 10
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
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Question # 11
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
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Question # 12
Economies of scale
Choose an answer
occur when increase in input less than proportionate increase in output
suggest that firm's marginal cost curve lies above its average cost curve
suggest that the firm's marginal cost curve is declining
occur when average cost is falling
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Question # 13
When total product falls, marginal product is.
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Zero
Positive
Negative
Falling
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Question # 14
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 # 15
The maximum point of TP curve is at quantity of labour where
Choose an answer
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 # 16
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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Question # 17
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 # 18
Law of decreasing returns generates
Choose an answer
law of economic growth
law of increasing costs
law of variable costs
law of decreasing costs
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Question # 19
Internal economies of scale include
Choose an answer
risk-bearing economics
trade mark
managerial economies
a and c of above
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Question # 20
Commercial economics are a pat of:
Choose an answer
Internal economics
External economics
Economies of scale
None of the three
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