Top 150+ Solved Basics of Economics Studies MCQ Questions Answer
Q. Law of variable proportions is concerned with
a. Long-run production function
b. Laws of returns to scale
c. Short-run production function
d. None of the above
Q. The ‘point of inflection’ come in which stage of the law of variable proportions
a. Stage I
b. Stage II
c. Stage III
d. None of the above
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. At the ‘point of inflection’
a. MP is maximum
b. AP is maximum
c. TP is maximum
d. All of the above
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. Economies of scale refers to:
a. Advantages resulting from large scale production
b. Disadvantages resulting from large scale production
c. Advantages resulting from the increase in the number of consumers
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