Top 150+ Solved General Economics 1 MCQ Questions Answer
Q. In short-run
a. All inputs are fixed
b. All inputs are variable
c. Some inputs are fixed and some are variable
d. None of the above
Q. In long-run
a. All inputs are fixed
b. All inputs are variable
c. Some inputs are fixed and some are variable
d. None of the above
Q. Marginal product of a factor is
a. The additional product received by the firm due to the employment of an additional unit of a variable factor
b. Addition to the total product when one more unit of a factor is employed
c. The rate of change in the total product per unit change in the variable factor.
d. All of the above
Q. Production function expresses
a. The relationship between input and output
b. How maximum output is produced with the given input
c. What is the least-cost combination of input to produce the given output
d. All of the above
Q. The variable cost of a firm vary in direct proportion to the
a. Volume of its output
b. Extent of its profits
c. Volume of its sale
d. All of the above
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 of the 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 proportionate increase 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