MCQ Questions for Class 11 Economics Chapter 3 Production and Costs with Answers

Here you will find NCERT MCQ Questions for Class 11 Economics with Answers PDF Free Download based on the important concepts and topics given in the textbook as per CBSE new exam pattern. This may assist you to understand and check your knowledge about the chapters. Students also can take a free test of the Multiple Choice Questions of Class 11 Economics. Each question has four options followed by the right answer. These MCQ Questions are selected supported by the newest exam pattern as announced by CBSE.

Q1. Opportunity cost is:

(a) Direct cost
(b) Total cost
(c) Accounting cost
(d) Cost of foregone opportunity

(b) Total cost

Q2. As output increases, average fixed cost:

(a) Remains constant
(b) Starts falling
(c) Start rising
(d) None

(b) Starts falling

Q3. Average fixed cost can be obtained through:

(a) AFC=TFC/TS
(b)AFC=EC/TU
(c)AFC=TC/PC
(d) AFC=TFC/TU

(a) AFC=TFC/TS

Q4. AFC curve is:

(a) Convex & downward sloping
(b) Concave & downward sloping
(c) Convex & upward sloping
(d) Concave & upward rising

(a) Convex & downward sloping

Q5. A firm’s average fixed cost is Rs 20 at 6 units of output what will it be at 4 units of output?

(a) Rs 60
(b) Rs 30
(c) Rs 40
(d) Rs 20

(a) Rs 60

Q6. U-shaped average cost curve is based on:

(a) Law of increasing cost
(b) Law of decreasing cost
(c) Law of constant returns to scale
(d) Law of variable proportions

Q7. When shape of average cost curve is upwards, marginal cost:

(a) Must be decreasing
(b) Must be constant
(c) Must be rising
(d) Any of these

Q8. If total cost at 10 units is Rs 600 and Rs 640 for 11th unit. The marginal cost of 11th unit is:

(a) Rs 20
(b) Rs 30
(c) Rs 40
(d) Rs 50

Q9. Economic cost excludes:

(a) Accounting cost + explicit cost
(b) Accounting cost + implicit cost
(c) Explicit cost + Implicit cost
(d) Accounting cost + opportunity cost

Q10. Which of the following cost curves is never ‘U’ shaped?

(a) Average cost curve
(b) Marginal cost curve
(c) Total cost curve
(d) Fixed cost curve

(a) Average cost curve

Q11. Which of the following explains the short-run production function ?

(a) Law of Demand
(b) Law of Variable Proportion
(c) Returns to Scale
(d) Elasticity of Demand

(b) Law of Variable Proportion

Q12. Long-run production function is related to:

(a) Law of Demand
(b) Law of Increasing Returns
(c) Laws of Returns to Scale
(d) Elasticity of Demand

Q13. In which stage of production a rational producer likes to operate in shot-run production ?

(a) First Stage
(b) Second Stage
(c) Third Stage
(d) None of these

(b) Second Stage

Q14. Law of variable proportion explains three stages of production. In the first stage of production:

(a) Both MP and AP rise
(b) MP rises
(c) AP Falls
(d) MP is zero

(a) Both MP and AP rise

Q15. At which time all the factors of production may be changed ?

(a) Short run
(b) Long run
(c) Very Long run
(d) All the three

(b) Long run

Q16. Production function is expressed as:

(a) Qx = Px
(b) Qx = f(A, B, C, D)
(c) Qx = Dx
(d) None of these

(b) Qx = f(A, B, C, D)

Q17. Which factors among following we find in short-run production process ?

(a) Fixed Factors
(b) Variable Factors
(c) Both (a) and (b)
(d) None of these

Q18. The cycle which increases first and after being constant starts to reduce is called :

(a) APP
(b) MPP
(c) TPP
(d) All of these

(d) All of these

Q19. Which of the following is a saurce of production ?

(a) Land
(b) Labour
(c) Capital
(d) All of these