# ISC ECONOMICS 12 Production MCQs with solved Answers

## ISC ECONOMICS 12 Production MCQs with solved Answers

### Question 1-5

1. ______ refers to the transformation of inputs into output.

(a) Production
(b) Consumption
(c) Promotion
(d) None of These

2. ______ is an expression of the technological relation between physical inputs and output of a good.

(a) Demand Function
(b) Cost Function
(c) Production Function
(d) None of These

3. Those factors which cannot be changed in the short run is known as:

(a) Fixed Factors
(b) Variable factors
(c) Semi-Variable Factors
(d) None of These

4. Total product is also known as:

(a) Total Physical Product
(b) Total Return
(c) Total Output
(d) All of These

5. Those factors which can be changed in the short run is known as:

(a) Fixed Factors
(b) Variable factors
(c) Semi-Variable Factors
(d) None of These

Answer 4. (d) All of These

### Question 6-10

6. Marginal Product is also known as:

(a) Marginal Physical Product
(b) Average Return
(c) Total Output
(d) Total Return

7. Which of the following is not a phase in the law of Variable Proportions?

(a) Increasing returns to a factor
(b) Constant returns to a factor
(c) Diminishing Returns to a factor

8. According to Law of Variable Proportions, there are____ phases:

(a) 1
(b) 2
(c) 4
(d) 3

9. According to Law of Variable Proportions, when we increase quantity of only one input keeping other inputs fixed. ______ initially increases at an increasing rate, then at a decreasing rate and finally at a negative rate:

(a) Marginal Product
(b) Average Return
(c) Total Product
(d) Total Return

10 ____ is the period of time in which all the factors of production are variable:

(a) Short-run
(b) Long-run
(c) Medium-run
(d) None of These

Answer 6. (a) Marginal Physical Product
Answer 7. (b) Constant returns to a factor

### Question 11-15

11. ____ is the extension of ‘Law of Diminishing Returns’:

(a) Law of Supply
(b) Law of Variable Proportions
(c) Law of Equi-marginal utility
(d) Law of diminishing marginal utility

12. When AP is maximum, MP is equal to:

(a) AP
(b) TP
(c) Zero
(d) One

13. Law of Variable proportions is also known as:

(a) Law of Returns
(b) Returns to Variable Factors
(c) Law of Returns to Factors
(d) All of These

14. Marginal products refers to addition to total output when one more:

(a) Unit is produced
(b) Unit is sold
(c) Unit is Consumed
(d) Unit of variable factors is employed

15. Product per unit of labour employed is termed as:

(a) Average Product
(b) Marginal Product
(c) Total Product
(d) None of These

Answer 11. (b) Law of Variable Proportions
Answer 13. (d) All of These
Answer 14. (d) Unit of variable factors is employed

### Question 16-20

16. Which of the following are the Assumptions of Law of Variable Proportions?

(a) It operates in the short run, as factors are classified as variable and fixed factors.
(b) The Law applies to all fixed factors including land.
(c) This Law applies to the field of Production only
(d) All of These

17. At the point of inflexion:

(a) Total product is maximum
(b) Average Product is Maximum
(c) Marginal Product is Maximum
(d) Marginal Product is zero

18. Which of the following is the reason for increasing return to a factor:

(a) Better utilization of fixed factor
(b) Optimum combination of factors
(c) Imperfect substitutes
(d) None of These

19. How will you calculate the Total product?
(a) ∑AP
(b) ∑TP
(c) ∑MP
(d) Any of these

20. Which of the given options shows the application of increasing returns?
(a) Specialization
(b) Efficiency of factors
(c) Indivisibility of factors
(d) All of these

Answer 16. (d) All of These
Answer 17. (c) Marginal Product is Maximum
Answer 18. (a) Better utilization of fixed factor
Answer 20. (d) All of these

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