Production Possibilities Production possibilities A B C D E F Good A 0 1 2 3 4 5 Good B 30 28 24 18 10 0 Given the data in Table, as one moves from successively from point A to point B, C, D, E and F, the opportunity cost of Good A:

Increases as more of good A is produced.

Decreases as more of good A is produced.

Is always equal to one unit of B.

Read the Table below & answer the following question: Labour Input Marginal Product Total Product Average Product 0 0 0 0 1 25 2 90 3 120 4 140 5 28 6 20 As quantity of the Variable Factor increases, Total Product (TP) Curve -

First increases, reaches a maximum and then decreases.

First decreases, reaches a minimum and then increases.

Production Possibilities (alternative) A B C D E F Hot pockets Eggs 15 12 9 6 2 0 0 6 11 15 18 20 Given the date in Table, as one moves successively from point A to point B, C, D, E and F the opportunity cost of eggs:

Increases as more Eggs are produced.

Decreases as more Eggs are produced.

Remains constant as more Eggs are produced.

MCQ Questions for Class 11 Commerce Economics Production And Costs Quiz 9

Production Possibilities

Production possibilities	A	B	C	D	E	F
Good A	0	1	2	3	4	5
Good B	30	28	24	18	10	0

Given the data in Table, as one moves from successively from point A to point B, C, D, E and F, the opportunity cost of Good A:

0%
Increases as more of good A is produced.
0%
Decreases as more of good A is produced.
0%
Remains constant.
0%
Is always equal to one unit of B.

Read the Table below & answer the following question:

Labour Input	Marginal Product	Total Product	Average Product
0	0	0	0
1			25
2		90
3		120
4		140
5			28
6			20

If Labour Input = 6, the Marginal product of labour is-

0%
120
0%
-20
0%
15
0%
10

In which of the following types of market structures can a Firm earn abnormal profits in the long run?

0%
Perfect Competition.
0%
Monopolistic competition.
0%
Monopoly.
0%
None of the above.

Expenditure incurred on Wages, Rent, Interest, etc. are included in ____________.

0%
Accounting Cost
0%
Opportunity Cost
0%
Fixed Cost
0%
Direct Cost

Bottled Cool Drinks Industry is an example of ________.

0%
Perfect Competition.
0%
Monopoly.
0%
Monopolistic Competition.
0%
Oligopoly.

In which of the following market conditions, does a Firm maximizes its profit when its Marginal Revenue is equal to Marginal Cost?

0%
Perfect Competition.
0%
Monopoly.
0%
Monopolistic Competition.
0%
All of the above.

If Total Product = 1,00,000 units when 20,000 hours of Labour are used, then Average Product= ___________________.

0%
100000
0%
20000
0%
5
0%
120000

Read the Table below & answer the following question:

Labour Input	Marginal Product	Total Product	Average Product
0	0	0	0
1			25
2		90
3		120
4		140
5			28
6			20

If Labour Input = 2, Marginal Product is-

0%
25
0%
90
0%
65
0%
115

Read the Table below & answer the following question:

Labour Input	Marginal Product	Total Product	Average Product
0	0	0	0
1			25
2		90
3		120
4		140
5			28
6			20

If Labour Input = 1, Total Output is-

0%
25
0%
30
0%
50
0%
75

Read the Table below & answer the following question:

Labour Input	Marginal Product	Total Product	Average Product
0	0	0	0
1			25
2		90
3		120
4		140
5			28
6			20

As quantity of the Variable Factor increases, Total Product (TP) Curve -

0%
Always increases
0%
Always decreases
0%
First increases, reaches a maximum and then decreases.
0%
First decreases, reaches a minimum and then increases.

Production Possibilities (alternative)

	A	B	C	D	E	F
Hot pockets Eggs	15	12	9	6	2	0
	0	6	11	15	18	20

Given the date in Table, as one moves successively from point A to point B, C, D, E and F the opportunity cost of eggs:

0%
Increases as more Eggs are produced.
0%
Decreases as more Eggs are produced.
0%
Remains constant as more Eggs are produced.
0%
Cannot be measured.

If Total Product (TP) is maximum, Marginal Product (MP) will be -

0%
Positive
0%
Negative
0%
Zero
0%
Infinity

What is the maximum point of TP?

0%
When AP becomes zero
0%
When MP becomes zero
0%
At the intersecting point of AP & MP
0%
None of these

Read the Table below & answer the following question:

Labour Input	Marginal Product	Total Product	Average Product
0	0	0	0
1			25
2		90
3		120
4		140
5			28
6			20

If Labour Input = 5, Marginal Product is-

0%
20
0%
120
0%
0
0%
-120

If Total Product (TP) increases at an increasing rate, Marginal Product (MP) will be -

0%
Increasing
0%
Decreasing
0%
Zero
0%
Infinity

Read the Table below & answer the following question:

Labour Input	Marginal Product	Total Product	Average Product
0	0	0	0
1			25
2		90
3		120
4		140
5			28
6			20

The firm's output is at a short run maximum at a labour input of:

0%
2
0%
3
0%
4
0%
6

Read the Table below & answer the following question:

Labour Input	Marginal Product	Total Product	Average Product
0	0	0	0
1			25
2		90
3		120
4		140
5			28
6			20

At what level of Labour Input are MP and AP equal?

0%
1
0%
2
0%
3
0%
4

Average Product (AP) Curve -

0%
Is parallel to X Axis
0%
Is parallel to Y Axis
0%
First decreases, reaches a minimum and then increases
0%
First increases, reaches a maximum and then decreases

Average Product (AP) -

0%
Will have positive values only
0%
Will have negative values only
0%
Can be positive or zero or even negative.
0%
Can be positive or zero, but not negative.

At the Point of Inflexion, the Marginal Product is ____________.

0%
Increasing
0%
Decreasing
0%
Maximum
0%
Negative

At what point is the Marginal Product maximum?

0%
Turning Point
0%
Equilibrium Point
0%
Focal Point
0%
Inflexion Point

If Marginal Product (MP) Curve is depicted on a graph with Quantity on X axis -

0%
MP will not go below the X axis.
0%
MP may go below the X axis.
0%
MP cannot be depicted on the graph at all.
0%
None of the above

The point where MP is maximum is called -

0%
Point of Increase
0%
Point of Indifference
0%
Point of Inflexion
0%
Point of Shut-down

Marginal Product (MP) Curve -

0%
Is parallel to X Axis
0%
Is parallel to Y Axis
0%
First decreases, reaches a minimum and then increases
0%
First increases, reaches a minimum and then decreases

If Average Product (AP) Curve is depicted on a graph with Quantity on X axis -

0%
AP will not go below the X axis.
0%
AP may go below the X axis.
0%
AP cannot be depicted on the graph at all.
0%
None of the above

Which of the following is correct?

0%
If Marginal Product is positive and falling, Total Product will rise at a decreasing rate.
0%
Total Product divided by Quantity of Variable Factor equals Average Product.
0%
Marginal Product and Average Product can be calculated from Total Product.
0%
All of the above.

Marginal Product (MP) -

0%
Will have positive values only
0%
Will have negative values only
0%
Can be positive or zero or even negative.
0%
Can be positive or zero, but not negative.

The PPC in the diagram reflects:

0%
Increasing opportunity cost of more wine production and constant opportunity cost of more grape juice production.
0%
Increasing opportunity cost of more wine production and decreasing opportunity cost of more grape juice production.
0%
Decreasing opportunity cost of more wine production and decreasing cost of more grape juice production.
0%
Increasing opportunity cost of more wine production and increasing cost of more grape juice production.

When Average Product (AP) decreases as a result of an increase in the quantity of variable input -

0%
MP < AP
0%
MP = AP
0%
MP > AP
0%
There is no relationship between MP and AP

When Marginal Product (MP) = Average Product (AP), it means that AP is -

0%
At its maximum
0%
At its minimum
0%
Zero
0%
Infinity

CBSE Questions for Class 11 Commerce Economics Production And Costs Quiz 9 - MCQExams.com

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Practice Class 11 Commerce Economics Quiz Questions and Answers

CBSE Questions for Class 11 Commerce Economics Production And Costs Quiz 9 - MCQExams.com

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Practice Class 11 Commerce Economics Quiz Questions and Answers

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