Question # 1

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 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

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

When total product rises marginal product.

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Remains the same

Falls

Also rises

None of the three

Law of diminishing returns applies more in:

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Industry

Agriculture

Mining

Construction

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

Marginal product curve intersects average product curve when AP curve is

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minimum

maximum

rising

falling

Economics of scale are of two kinds

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temporary and permanent

internal and external

managerial and industrial

natural and artificial

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

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

Economies of scale

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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

When total product falls, marginal product is.

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Zero

Positive

Negative

Falling

Which one will determine scale of production .

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Financial resources

Production techniques

Extant of the market

All the above

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

The production function relates to

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cost of output

cost of input

output to input

demand to output

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

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

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

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