Indian Economy Mcq Questions

Indian Economy Mcq Questions

1. Which of the following is not an assumption of the Law of variable Proportions?
(a) There is no change in technology.
(b) Variable factors are homogeneous.
(c) No change in price of related goods.
(d) One factor is variable & others are fixed.

2. Which of the following factor is assumed to be fixed in short run of Law of variable proportions?
(a) Land
(b) Labour
(c) Capital
(d) Entrepreneur

3. Law of Variable proportion is applicable in :
(a) Agriculture
(b) Industries
(c) Both (a) & (b)
(d) Only (a)

4. How many laws of Return are there?
(a) 1
(b) 2
(c) 3
(d) 4

5. When more & more units of labour are employed on a given piece of land, the marginal product of additional unit of labour will go on diminishing , It is called:
(a) Law of diminishing returns
(b) Law of increasing returns
(c) Law of constant returns
(d) None of these

Important Question on Law of Variable Proportions

6. Law of increasing returns is applicable to :
(a) Agriculture
(b) Industries
(c) Mining
(d) None of these

7. Law of increasing returns is fastly Applicable to Industries because of :
(a) Division of labour
(b) New inventions
(c) Both (a) & (b)
(d) None of these

8. Law of diminishing returns is applicable to Agriculture because of :
(a) Natural factors
(b) Decrease in fertility of land
(c) Less use of machines
(d) All of the above

9. When one more unit of labour is combined with the land and marginal product is constant, it is called?
(a) Law of diminishing returns
(b) Law of increasing returns
(c) Law of constant returns
(d) None of these

10. Causes of Applicability of law of variable proportions are :
(a) Imperfect substitutes
(b) Under-utilization of fixed factor
(c) Optimum production
(d) All of the above

ANSWERS:

1. c
2. a
3. c
4. c
5. a
6. b
7. d
8. c
9. c
10. d

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