Solved Law of Variable Proportions (Production

Law of Variable Proportions MCQs for Competitive Exams

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Topic Notes: Law of Variable Proportions

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What economic principle describes the phenomenon where increasing a variable input while holding others constant eventually results in a declining marginal product?

The law of diminishing returns

an inefficient production technique

decreasing returns to scale

constant returns to scale

Report

How does the slope of the total-cost curve change when a production function exhibits diminishing marginal product?

is liner (a straight line)

could be any of these answers

becomes steeper as the quantity of output increases

become flatter as the quantity of output increases.

Report

What does the law of diminishing returns state?

Marginal utility falls as more unity of a product are consumed

The total product falls as more units of a variable factor are added to a fixed factor

The marginal product fall as more units of a variable factor are added to a fixed factor

The marginal product increases as more units of a variable factor are added to a fixed factor

Report

What is the economic term for the process of breaking down production into specialized tasks performed by different workers?

Closed shop

Division of Labor

Divided Labor

Open shop

Report

How is labor productivity defined in economic terms?

The total amount of goods produced

The additional output generated by one more unit of labour

The average output per worker

The output per machine

Report

How does the slope of a production function change when it is subject to the law of diminishing marginal product?

becomes flatter as the quantity of the input increase

is linear (a straight line)

becomes steeper as the quantity of the input increase

could be any of these answers

Report

Which of the following factors does not cause an increase in the supply of watches?

All of the above lead to an increase in the supply of watches

A rise in the price of watches

A reduction in labor costs for watch production

A technological breakthrough in watch manufacturing

Report

How is the 'short run' defined in economic analysis?

a period where the law of diminishing returns does not hold.

all inputs being variable

at least one fixed factor of production and firms neither leaving nor entering the industry

no variable inputs – that is all of the factors of production are fixed

Report

How do economists define the 'short run' in terms of production factors and market entry?

no variable inputs – that is, all of the factors of production are fixed

a period where the law of diminishing returns does not hold

all inputs being variable

at least one fixed factor of production and firms neither leaving nor entering the industry.

Report

What is the term for the process where production tasks are separated among different workers or groups?

Open shop

Division of Labor

Closed shop

Divided Labor

Report

Law of Variable Proportions MCQs for Competitive Exams

Law of Variable Proportions MCQs for Competitive Exams

Topic Notes: Law of Variable Proportions

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