Economics MCQS with Answers 1st Year Chapter 11

Google Ads1

Economics MCQS with Answers 1st Year

Which one is the small scale production.
Bata shoe factory
Sufi soap
A barber shop
kohinoor Textile Industries

When diseconomies of scale outweigh economies of scale the
long run ATC curve falls
marginal cost falls
long run AC curve rises
AVC falls

Economics of scale are of two kinds
internal and external
managerial and industrial
temporary and permanent
natural and artificial

When total product rises marginal product.
Remains the same
None of the three
Also rises

Marginal product curve intersects average product curve when AP curve is

In production of goods, negative returns in the short run imply that
marginal cost is falling
total product is negative
marginal product is negative
average product is negative

during short period, diminishing returns may follow because
quantity of capital is fixed
quantity of labour is fixed
quality of labour is fixed
quantity of any one factor is fixed

Law of diminishing returns is a universal law as:
It does apply in all aspects of an economy.
It is hard to check it.
It applies in industry as well
Basically it applies in agriculture.

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
additional workers are more efficient
MP of labour is grater than AP of labour
AP is maximum
MP and AP are equal

When MP is zero, TP is

Continue Reading Go to Next Page

Google Ads