Cost Class 11 MCQ Questions Economics are covered in this Article. Cost Class 11 MCQ Test contains 30 questions. Answers to MCQs on Cost Class 11 Economics are available after clicking on the answer. These MCQs have been made for Class 11 students to help check the concept you have learned from detailed classroom sessions and the application of your knowledge.
| Subject | Economics (MCQ) |
| Topic | Cost Class 11 MCQ Questions |
| Category | Economics Class 11 MCQs |
Cost Class 11 MCQ Questions Economics
1.______ is the total expenditure incurred in producing a commodity.
(a) Explicit cost
(b) Cost
(c) Implicit cost
(d) Inputs
Answer
Answer: (b) Cost
2. Cost is the sum total of;
(a) Explicit cost
(b) Cost
(c) Implicit cost
(d) both (a)&(c)
Answer
Answer: (d) both (a)&(c)
3. ______ is the actual money expenditure on inputs.
(a) Explicit cost
(b) Cost
(c) Implicit cost
(d) Inputs
Answer
Answer: (a) Explicit cost
4. _____ is the estimated value of the inputs supplied by the owners.
(a) Explicit cost
(b) Cost
(c) Implicit cost
(d) Inputs
Answer
Answer: (c) Implicit cost
5. ________ refers to those costs which do not vary directly with the level of output.
(a) Cost
(b) Explicit cost
(c) Fixed cost
(d) Total cost
Answer
Answer: (c) Fixed cost
6. Fixed cost is also known as;
(a) Supplementary cost
(b) Overhead cost
(c) Indirect cost
(d) All of the above
Answer
Answer: (d) All of the above
7. ______ refers to the cost which varies directly with the level of output.
(a) Variable cost
(b) Explicit cost
(c) Fixed cost
(d) Total cost
Answer
Answer: (a) Variable cost
8. Variable cost is also known as;
(a) Prime cost
(b) Direct cost
(c) Avoidable cost
(d) All of the above
Answer
Answer: (d) All of the above
9. ______ is the expenditure incurred by a firm on the factors of production.
(a) Variable Cost
(b) Explicit cost
(c) Fixed cost
(d) Total cost
Answer
Answer: (d) Total cost
10. ____ is the sum total of total fixed cost and total variable cost.
(a) Variable Cost
(b) Explicit cost
(c) Fixed cost
(d) Total cost
Answer
Answer: (d) Total cost
Cost Class 11 MCQ Questions Economics
11. Read the following statement given below and choose the correct alternative
Statement 1- TFC curve is a horizontal straight line parallel to X-Axis.
Statement 2- Normal profit is the minimum reward that is just sufficient to keep the entrepreneurs supplying his factor services.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: (a) Both are correct
12. Read the following statement given below and choose the correct alternative.
Statement 1- Per unit fixed cost of production is termed as an average variable cost.
Statement 2- Per unit variable cost of production is termed as an average fixed cost.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: (b) Both are incorrect
13. Read the following statement given below and choose the correct alternative.
Statement 1- Addition to the total cost when one more unit of output is produced is termed as marginal cost.
Statement 2- MC is the change in Average cost when one more unit is produced.
(a) Both are correct
(B) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: (c) Statement 1 is correct and statement 2 is incorrect
14. Read the following statement given below and choose the correct alternative
Assertion- TC and TVC curves are inversely S-shaped
Reason- TC, and TVC rise Initially at a decreasing rate, then at a constant rate, and finally at an incredible rate.
(a) Both Assertion and Reason are true. The reason is the correct explanation of the assertion
(b) Both Assertion and reason are not true. The reason is not the correct explanation of assertion.
(c) Assertion is true but the reason is not.
(d) Reason is true but the assertion is not
Answer
Answer: (a) Both Assertion and Reason are true. The reason is the correct explanation of the assertion
15. Read the following statement given below and choose the correct alternative.
Assertion- AT Zero output, TC is equal to TFC.
Reason- As TVC rises with an increase in the output, the distance between TFC and TC curves also goes on increasing.
(a) Both Assertion and Reason are true. The reason is the correct explanation of the assertion
(b) Both Assertion and Reason are true. The reason is not the correct explanation of assertion.
(c) Assertion is true but the reason is not.
(d) Reason is true but the assertion is not
Answer
Answer: (b) Both Assertion and Reason are true. The reason is not the correct explanation of assertion.
16. Read the following statement given below and choose the correct alternative.
Assertion- TC and TVC curves are parallel to each other and the vertical distance between them remains the same at all levels of output.
Reason- The gap between TC and TFC represents TVC
(a) Both Assertion and Reason are true. The reason is the correct explanation of the assertion
(b) Both Assertion and reason are not true. The reason is not the correct explanation of assertion.
(c) Assertion is true but the reason is not.
(d) Reason is true but the assertion is not
Answer
Answer: (b) Both Assertion and reason are not true. The reason is not the correct explanation of assertion.
17. Read the following statement given below and choose the correct alternative.
Assertion- AFC can never touch the X-Axis.
Reason- TFC can never be zero
(a) Both Assertion and Reason are true. The reason is the correct explanation of the assertion
(b) Both Assertion and reason are not true. The reason is not the correct explanation of assertion.
(c) Assertion is true but the reason is not.
(d) Reason is true but the assertion is not
Answer
Answer: (a) Both Assertion and Reason are true. The reason is the correct explanation of the assertion
18. ______ is derived from total cost.
(a) AC
(b) MC
(c) Both (a)&(b)
(d) None of the above
Answer
Answer: (c) Both (a)&(b)
19. AC and MC curves are U-Shaped due to;
(a) Law of Diminishing returns
(b) Law of marginal utility
(c) Law of utils
(d) Law of variable proportions
Answer
Answer: (d) Law of variable proportions
20. When_____ falls it pulls up____.
(a) MC, AC
(b) AC,MC
(c) TC,MC
(d) MC,TC
Answer
Answer: (a) MC, AC
Cost Class 11 MCQ Questions Economics
21. MC is steeper as compared to _____.
(a) AC
(b) TVC
(c) AVC
(d) TFC
Answer
Answer: (c) AVC
22. AC is greater than AVC by the amount of_____.
(a) AC
(b) TVC
(c) AFC
(d) TFC
Answer
Answer: (c) AFC
23. Read the following statement given below and choose the correct alternative.
Statement 1- AC and AVC curves can never intersect each other.
Statement 2- AFC can never be zero.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: (a) Both are correct
24. Which of the following are U-Shaped Curves.
(a) MC
(b) AVC
(c) AC
(d) All of the above
Answer
Answer: (d) All of the above
25. MC curve cuts AC and AVC at_____.
(a) Maximum point
(b) Minimum point
(c) Initial point
(d) Final point
Answer
Answer: (b) Minimum point
26. TC rises at Diminishing rates, MC___.
(a) Falls
(b) Falls with an increasing rate
(c) Rises
(d) None of the above
Answer
Answer: (a) Falls
27. Calculate TFC
| Output | 0 | 1 | 2 | 3 | 4 |
| TC | 28 | 60 | 78 | 108 | 140 |
(a) 0
(b) 28
(c) 60
(d) 78
Answer
Answer: (b) 28
28. From the following table find out the value of TVC at the 2nd level of output.
| Output | 1 | 2 |
| AVC | 20 | 15 |
(a) 30
(b) 60
(c) 15
(d) 7.5
Answer
Answer: (a) 30
29. Find out the missing information
| Output | 1 |
| TC | _____ |
| AC | ______ |
| MC | 30 |
(a) 30, 60
(b) 30,15
(c) 30,30
(d) 15,30
Answer
Answer: (c) 30,30
30. A firm is producing 40 units. At this level of output, ATC and AVC are respectively equal to ₹50 and ₹47. Find out the total fixed cost of the firm.
(a) 60
(b) 30
(c) 120
(d) 160
Answer
Answer: (c) 120
Term 2 – NCERT Economics Class 11 MCQ
Part A – MCQ Questions for Class 11 Statistics Economics
- Statistical Tools and Interpretation – Measures of Dispersion, Correlation, Index Number
Part B – MCQ Questions for Class 11 Microeconomics
- Producer Behaviour and Supply
- Production Function Class 11 MCQ
- Cost Class 11 MCQ Economics
- Revenue Class 11 MCQ Economics
- Forms of Market and Price Determination under perfect competition with simple applications