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




Question 31 :
The iso-quants are concave to the origin.

  1. TRUE
  2. FALSE
  

Question 32 :
Two iso-quants can intersect each other.

  1. TRUE
  2. FALSE
  

Question 33 :
The point of tangency between iso-cost line and iso-quant is the point of producer’s equilibrium.

  1. TRUE
  2. FALSE
  

Question 34 :
Economies of scale lead to reduction in cost of production.

  1. TRUE
  2. FALSE
  

Question 35 :
A large firm can enjoy financial economies and marketing economies.

  1. TRUE
  2. FALSE
  

Question 36 :
Increasing return to scale curve is upward sloping curve.

  1. TRUE
  2. FALSE
  

Question 37 :
Economies of scope is reflected in the higher cost.

  1. TRUE
  2. FALSE
  

Question 38 :
Economies of scope is possible when two or more goods are produced.

  1. TRUE
  2. FALSE
  

Question 39 :
Production refers to :

  1. Production function
  2. Creation of utilities
  3. Producing output
  4. Transformation
  

Question 40 :
Inputs in the process of production refers to :

  1. The employment
  2. The use of factors of production
  3. Anything in a factory
  4. None of the above
  

Question 41 :
Production function refers to :

  1. The input output relationship in the process of production
  2. The technological impact
  3. The technology and other resources in operations
  4. The production methods
  

Question 42 :
In the short–run :

  1. All factors are variable
  2. There exists some fixed factors only
  3. Output varies with variable factors
  4. There is short time for change
  

Question 43 :
In long–run :

  1. Production level can be increased infinitely
  2. All factors are variable
  3. Everything can be changed
  4. Production level refers to period of 10 years and above
  

Question 44 :
When the total product is maximum :

  1. Average product is maximum
  2. Marginal product is maximum
  3. Marginal product is equal to average product
  4. Marginal product is zero
  

Question 45 :
Increasing returns to scale means :

  1. Marginal product is constant
  2. Proportion of change is output is exceeding the proportion of change in input
  3. The marginal product curve is declining
  4. Excellent management
  

Question 46 :
The slope of an iso–quant refers to the measurement of :

  1. The marginal rate of technical substitution
  2. The marginal physical product of labour
  3. The capital efficiency
  4. All of the above
  

Question 47 :
Long-run average cost decline as output expands due to :

  1. Good management
  2. Technological advancement
  3. Economics of scale
  4. Spread of fixed costs
  

Question 48 :
Labour economy is caused by :

  1. Division of labour
  2. Time management
  3. Managerial efficiency
  4. Better organisation
  

Question 49 :
The slope of long-run cost curve is influenced by :

  1. The artist
  2. Managerial economy
  3. Economics and diseconomics of scale
  4. Input-output technical relationship
  

Question 50 :
Application of automotive devices with expanding scale of operation leads to :

  1. Industrial economy
  2. Technical economy
  3. External economy
  4. Technical force
  

Question 51 :
Internal economies are realized by the firm :

  1. When its size is big
  2. Scale of operation is large
  3. Within itself
  4. All of the above
  

Question 52 :
External economics occur when :

  1. Size of firm expands
  2. Size of industry expands
  3. Economy grows
  4. All of the above
  

Question 53 :
______ type of iso-quant assumes perfect substitutability.

  1. Leontief iso-quant
  2. Kinked iso-quant
  3. Linear iso-quant
  4. Smooth convex iso-quant
  

Question 54 :
The area lying between the two ridge lines is the ______.

  1. non-economic region
  2. economic region
  3. economic of scope
  4. none of there
  

Question 55 :
______ is attributed to the multi–product cost function.

  1. Economies of scope
  2. Diseconomies of scale
  3. Economies of scale
  4. None of these
  

Question 56 :
The point of tangency between iso–cost line and iso–quant is the point of ______.

  1. Consumer’s equilibrium
  2. Producer’s equilibrium
  3. Both (a) and (b)
  4. None of these
  

Question 57 :
Decreasing return to scale arises due to ______ of large scale production.

  1. economies
  2. diseconomies
  3. both (a) and (b)
  4. None of these
  

Question 58 :
If there is zero substitutability between capital and labour the isoquant is__________.

  1. a straight line
  2. L shaped
  3. concave to the origin
  4. None of these
  

Question 59 :
The total amount of output produced is called ______.

  1. Total supply
  2. Total product
  3. Both a and b
  4. None of the above
  

Question 60 :
Using five units of labour a firm can produce 2500 units of a good. Using six units of labour the firm can produce 3000 units of the good. The marginal product of the sixth unit of labour is.

  1. 100 units
  2. 1500 units
  3. 2000 units
  4. 500 units
  
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