B.COM ECO-1 (Production Analysis) MCQ's




Question 1 :
Production function refers to _____ of input into output.

  1. transformation
  

Question 2 :
Addition made to total product by adding on extra unit of labour is defined as the _____ of labour.

  1. marginal product
  

Question 3 :
A producer’s output equilibrium is determined at the point of _____ between isovant and isocost lines.

  1. tangency
  

Question 4 :
A proportional increase in output in relation to the charge in input implies _____ returns to scale.

  1. minimum
  2. constant
  3. maximum
  4. None of these
  

Question 5 :
When percentage change in output is greater than that of input, it is the phenomenon of _____ returns to scale.

  1. constant
  2. increasing
  3. None of these
  4. decreasing
  

Question 6 :
When marginal product is zero total product is _____.

  1. constant
  2. minimum
  3. None of these
  4. maximum
  

Question 7 :
Labour economy is caused by ______.

  1. Better organisation
  2. Time management
  3. Specialisation/division of labour
  4. Mangerial Efficieny
  

Question 8 :
When managerial costs per unit declines it is the case of ______.

  1. Managerial economy
  2. none of there
  

Question 9 :
A double decker bus is an example of ______ economy of increased dimension.

  1. Technical
  

Question 10 :
A firm experiences ______ economics of scale when its size expands.

  1. none of there
  2. External
  3. Internal
  

Question 11 :
Localisation of industry confers ______ economic to the clustering firm.

  1. Internal
  2. none of there
  3. External
  

Question 12 :
______ refers to total product per unit of variable factor.

  1. average product
  

Question 13 :
______ is the functional relationship between physical input and output.

  1. Management function
  2. production function
  3. Labour function
  4. None of these
  

Question 14 :
The scale of production can varied only in the ______.

  1. reduction
  2. none of there
  

Question 15 :
Economies of scale lead to ______ in cost of production.

  1. None of these
  2. long run
  3. Short run
  

Question 16 :
______ was initially called as the law of diminishing returns.

  1. law of variable proportion
  2. none of there
  

Question 17 :
The ______ are the locus of points of an iso-quants where the marginal product of factors are zero.

  1. Ridge line
  

Question 18 :
When the average product is maximum, marginal product is greater than average product.

  1. TRUE
  2. FALSE
  

Question 19 :
In long–run all factors tend to be variable.

  1. TRUE
  2. FALSE
  

Question 20 :
When marginal product is negative it is called the stage of negative returns.

  1. TRUE
  2. FALSE
  

Question 21 :
Production function defines the master servant relationship.

  1. TRUE
  2. FALSE
  

Question 22 :
When marginal product is zero, total product is minimum.

  1. TRUE
  2. FALSE
  

Question 23 :
TPL falls when MPL falls.

  1. TRUE
  2. FALSE
  

Question 24 :
Under increasing returns : MP > AP

  1. TRUE
  2. FALSE
  

Question 25 :
The laws of variable proportions assumes all factors should remain constant.

  1. TRUE
  2. FALSE
  

Question 26 :
With the division of labour specialisation leads to technological economics

  1. TRUE
  2. FALSE
  

Question 27 :
External economics are realized by the monopolist firms since there is no competition

  1. TRUE
  2. FALSE
  

Question 28 :
Internal economics enjoyed by an individual firm.

  1. TRUE
  2. FALSE
  

Question 29 :
Division of labour leads to labour economy

  1. TRUE
  2. FALSE
  

Question 30 :
Using superior technology leads to external economy of scale.

  1. TRUE
  2. FALSE
  
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