CBSE Questions for Class 11 Commerce Economics Production And Costs Quiz 10 - MCQExams.com

At the Point of Inflexion -
  • Total Product is maximum
  • Average Product is maximum
  • Marginal Product is maximum
  • All of the above
At the Point of Inflexion, TP will generally -
  • Show an increasing trend
  • Show decreasing trend
  • Equal to zero
  • Be negative
When AP rises as a result of an increase in the quantity of variable input -
  • MP is more than AP.
  • MP is less than AP
  • MP = AP
  • There is no relationship between MP and AP
Marginal Product (MP) Curve cuts Average Product (AP) Curve-
  • MP = AP
  • AP is maximum
  • MP is falling
  • All of the above
When Average Product (AP) rises as a result of an increase in the quantity of variable input -
  • MP < AP
  • MP = AP
  • MP > AP
  • There is no relationship between MP and AP
Marginal Product (MP) Curve cuts Average Product (AP), when -
  • MP < AP
  • MP = AP
  • MP > AP
  • MP = 0
Marginal Product (MP) rises steeply, and also declines slightly earlier than Average Product (AP) Curve. This statement is -
  • True
  • False
  • Partially True
  • None of the above
Which of the following is an assumption in the Law of Variable Proportions?
  • The Fixed Factor of production is scarce
  • There are no perfect substitutes for the Fixed Factor
  • Factors of Production can be used in any proportion
  • All of the above
Which Law examines the production function keeping one-factor variable?
  • Law of Returns to Scale
  • Law of Increasing Returns to Scale
  • Law of Variable Proportion
  • Law of Diminishing Marginal Utility
The Law of ____________ analyses the production function with one factor as variable, keeping quantities of other factors fixed.
  • Returns to Scale
  • Multiple Proportions
  • Variable Proportions
  • Fixed Proportions
Excise Duty are levied on ______________.
  • income of the individual
  • production of goods
  • export and import of goods
  • incomes of the corporate
The Law of Variable Proportions analyses _____ the with one factor as variable, keeping quantities of other factors fixed.
  • Revenue Function
  • Production Function
  • Cost Function
  • Demand and Supply Function
Assumptions which are applicable under Law of Variable Proportion are-
  • State of technology is constant
  • Quantities of some inputs is kept fixed
  • Economic profitability in monetary terms is not considered
  • All of these
When is Average Product at its maximum?
  • When AP intersects MP
  • When AP intersects TP
  • At the Point of Inflexion
  • All of the above
Marginal Product (MP) Curve cuts Average Product (AP) Curve -
  • From above
  • From below
  • MP does not cut AP at all
  • Nothing can be said
Which of the following is an assumption in the Law of Variable Proportions?
  • The state of technology is constant and unchanged
  • Only physical quantities of inputs and outputs are considered
  • Only one-factor input is considered variable, while all other factors are fixed
  • All of the above
The Law of Variable Proportions analyses the economic profitability of the Firm in monetary terms also. This statement is -
  • True
  • False
  • Partially True
  • None of the above
Which of the following is not an assumption in the Law of Variable Proportions?
  • There are no perfect substitutes for the Fixed Factor
  • Only one-factor input is considered variable, while all other factors are fixed.
  • The state of Technology is improved as more output is produced
  • Only physical quantities of inputs and outputs are considered
Law of Variable Proportions is valid when -
  • Only one input is varied and all other inputs are kept constant
  • All Factors are kept constant
  • All inputs are varied in the same proportion
  • Any of the above
When a Factory is working at 70% capacity, increasing of variable inputs, leads to-
  • Increasing output
  • Decreasing of output according to the Law of Diminishing Returns
  • Increasing of output up to full capacity and later decreasing of the Marginal Product according to the Law of Diminishing Returns
  • Decreasing of output up to full capacity and later increasing of the output
Service Tax is levied on:
  • Exports and Imports
  • Manufacture of excisable goods /commodities
  • Services Rendered
  • Sale made by a Dealer in the course of inter-state or intra-state trade or commerce.
If all factors are required to be used in fixed proportions, then the Law of Variable Proportions -
  • Will apply
  • Will not apply at all
  • Both (a) and (b) are true to some extent
  • Neither (a) nor (b) is true
The law of variable proportions come into being when ________________.
  • there are only two variable factors
  • there is a fixed factor and a variable factor
  • all factors are variable
  • variable factors yield less output
The Law of Variable Proportions assumes that factors of production -
  • Can be used only in a specified proportion
  • Can be used in any proportion
  • Cannot be used at all
  • Do not affect production
Which of the following is not an assumption in the Law of Variable Proportions?
  • There are no perfect substitutes for the Fixed Factor
  • Factors of Production can be used in any proportion
  • Only physical quantities of inputs and outputs are considered
  • None of the above
 ________ states that when Labor increases with capital being the same, the Marginal Productivity of Labor will increase at first but start decreasing later.
  • Law of Equi-Marginal Returns
  • Law of Diminishing Marginal Utility
  • Law of Variable Proportions
  • Law of Constant Returns
Which one of the following best defines 'long run'?
  • A period of more than 3 years.
  • A period in which existing plant and machinery could be completely dismantled and replaced by new plant and machinery.
  • A period sufficient to put into operation a method which will produce a given output at the lowest possible cost.
  • A period necessary to pass the teething trouble and to start earning a profit.
Average cost does not fall unless marginal cost also falls.
  • True
  • False
When production is zero, total cost will be ________.
  • zero
  • equal to variable cost
  • equal to fixed cost
  • equal to marginal cost
Why does the Law of Increasing Returns operate?
  • Full Use of Fixed Indivisible Factors
  • Efficiency of Variable Factors
  • Need to reach the right combination
  • All of the above
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