# 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

(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

(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

(c) Law of constant returns to scale

## 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

(c) Must be rising

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

(c) Rs 40

## Q9. Economic cost excludes:

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

(c) Explicit cost + Implicit 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

(c) Laws of Returns to Scale

## 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

(c) Both (a) and (b)

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

(d) All of these

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

(d) All of these

## Q20. Law of variable proportion is related to :

(a) Both short-run and long run
(b) Long-run
(c) Short-run
(d) Very Long-run

(c) Short-run

## MCQ Questions for Class 11 Microeconomics: Introductory Microeconomics

Practicing NCERT Economics MCQs With Answers Pdf Class 11 is one of the best ways to prepare for the CBSE Class 11 board exam. There is no substitute for consistent practice whether one wants to understand a concept thoroughly or one wants to score better. If you have any queries regarding The CBSE Class 11 Economics MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

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