Question # 1

An important factor which promotes large scale production is:

Choose an answer

Extant of market

Revolutionary changes in social life

Culture and civilization

All the three

Laws of return apply to firms working in

Choose an answer

perfect competition

monopoly

small firm

all kinds of market situations

If in a production process, all inputs are increased by 10% and output increase by less than 10%, then it is called

Choose an answer

economies of scale

diseconomies of scale

diminishing marginal returns

negative economies

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

Economies and diseconomies of scale determine the shape of

Choose an answer

long run AC curve

short run AC

average fixed cost

none of the above

When MP is zero, TP is

Choose an answer

minimum

maximum

rising

falling

Internal economies of scale include

Choose an answer

risk-bearing economics

trade mark

managerial economies

a and c of above

during short period, diminishing returns may follow because

Choose an answer

quantity of labour is fixed

quality of labour is fixed

quantity of capital is fixed

quantity of any one factor is fixed

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

Choose an answer

AP > MP

AP = MP

AP < MP

AP = MP = 0

When total product falls, marginal product is.

Choose an answer

Zero

Positive

Negative

Falling

When average product falls marginal product

Choose an answer

Rises

Also falls

Remain equal to average product

Does not change

Law of diminishing returns is a universal law as:

Choose an answer

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

Law of decreasing returns generates

Choose an answer

law of economic growth

law of increasing costs

law of variable costs

law of decreasing costs

Which one is the third stage of production under law of variable proportions

Choose an answer

Decreasing average returns

Increasing average return

Negative marginal return

Increasing marginal return

The law of increasing returns is also known as:

Choose an answer

Law of increasing cost

Law of diminishing cost

Law of constant cost

None of the three

When total product rises marginal product.

Choose an answer

Remains the same

Falls

Also rises

None of the three

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

Which of the following saying describes diminishing marginal returns in the short run?

Choose an answer

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

Commercial economics are a pat of:

Choose an answer

Internal economics

External economics

Economies of scale

None of the three

The production function relates to

Choose an answer

cost of output

cost of input

output to input

demand to output

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

Choose an answer

average product is negative

total product is negative

marginal product is negative

marginal cost is falling

More Classes

Other Links

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

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer