Top 150+ Solved Basics of Economics MCQ Questions Answer
Q. A rational producer will select his level of production in which stage ofthe law of variable proportions
a. stage i
b. stage ii
c. stage iii
d. either stage i or stage ii
Q. Total product reaches at maximum when
a. mp is increasing
b. mp is maximum
c. mp = 0
d. mp is negative
Q. Returns to scale refers to the production function where
a. all factors are fixed
b. some factors are fixed and others are variable
c. all factors are variable
d. none of the above
Q. In the case of diminishing returns to scale, a given proportionateincrease in all factors causes
a. a more than proportionate increase in output
b. an equal proportionate increase in output
c. a less than proportionate increase in output
d. none of the above
Q. Increasing returns to scale occurs due to
a. division of labour
b. specialization
c. economies of scale
d. all of the above
Q. The cause for diminishing returns to scale is:
a. improper proportion of factors of production
b. difficulty in the combination of certain factors
c. excess combination of certain factors
d. all of the above
Q. The solution to diminishing returns to scale is :
a. technical progress
b. expansion of resources
c. proper combination or resources
d. all of the above
Q. Which one of the following is not related to economies of scale:
a. scope for division of labour and specialization
b. scope for getting inputs at cheaper rates
c. difficulty faces by the managers to coordinate the business
d. scope for better storage facilities
Q. The law of Diminishing returns is applicable to:
a. agriculture only
b. industry only
c. in short-run only
d. universally
Q. labourers are employed the firm produces 136 units of output. Thenthe marginal product is ---
a. 120
b. 136
c. 6
d. 16
Q. Other things remaining the same, the quantity of a product demandedincreases with ------------ in price.
a. increase
b. decrease
c. variation
d. none of the above
Q. Relation between price of a commodity and demand for anothercommodity is measured by:
a. price elasticity
b. income elasticity
c. cross elasticity
d. elasticity of substitution