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Chapters
1: Microeconomics and Macroeconomics: Introduction
2: Demand and Law of Demand
3: Theory of Consumer Behaviour: Marginal Utility and Indifference Curve Analysis
4: Elasticity of Demand
5: Supply - Law of Supply and Price Elasticity of Supply
6: Market Mechanism: Equilibrium Price and Quantity in a Competitive Market
▶ 7: Laws of Returns - Returns to a Factor and Returns to Scale
8: Cost and Revenue Analysis
9: Forms of Market
10: Producer's Equilibrium
11: Determination of Equilibrium Price and Output Under Perfect Competition
SECTION 2: THEORY OF INCOME AND EMPLOYMENT
12: Theory of Income and Employment
SECTION 3: MONEY AND BANKING
13: Money: Meaning and Functions
14: Banks: Commercial Bank and Central Bank
SECTION 4: BALANCE OF PAYMENTS AND EXCHANGE RATE
15: Balance of Payments and Exchange Rate
SECTION 5: PUBLIC FINANCE
16: Fiscal Policy
17: Government Budget
SECTION 6: NATIONAL INCOME
18: National Income and Circular Flow of Income
19: National Income Aggregates
20: Methods of Measuring National Income
SECTION 7: PROJECT WORK
21: Project Work
22: Model Short Answer Questions
![Frank solutions for Economics [English] Class 12 ISC chapter 7 - Laws of Returns - Returns to a Factor and Returns to Scale - Shaalaa.com](/images/economics-english-class-12-isc_6:872f47036b5c4267ae061d4279703803.jpg "Frank solutions for Economics [English] Class 12 ISC chapter 7 - Laws of Returns - Returns to a Factor and Returns to Scale")
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Solutions for Chapter 7: Laws of Returns - Returns to a Factor and Returns to Scale
Below listed, you can find solutions for Chapter 7 of CISCE Frank for Economics [English] Class 12 ISC.
Frank solutions for Economics [English] Class 12 ISC 7 Laws of Returns - Returns to a Factor and Returns to Scale TEST YOURSELF QUESTIONS [Pages 137 - 141]
Select the correct option for each of the following questions: (1 mark each)
Production function shows the relationship between inputs and output as ______.
technological relation
physical relation
both technological relation and physical relation
none of these
Short run refers to the period of time when the increase in output can be brought about by ______.
increasing all factor inputs
increasing the quantity of fixed factor
increasing the quantity of variable factors only
increasing the quantity of one variable input (labour) and keeping all other inputs constant
The time period in which the capacity of a plant can be varied ______.
short period
market period
long period
all of these
Return to a factor means ______.
quantity of only one factor is changed
quantity of all factor inputs is changed
fixed factors are changed but variable factors are kept constant
both fixed and variable factors are changed in equal proportion
Total product can be calculated as ______.
∑AP
∑MP
MP × units of variable factor
none of these
When total product to a variable factor reaches the maximum, what will be the marginal product?
Negative
Increases
Decreases
Zero
When marginal product is zero, what happens to the total product?
Total product will be negative
Total product will be rising
Total product will be maximum
Total product will be falling
When marginal product becomes negative, then total product will be ______.
Rising
Falling
Constant
None of the above
Long-run production function is related to ______.
Law of returns to scale
Law of variable proportion
Law of demand
None of these
Which of the given options account for increasing returns to a factor?
Fuller utilisation of fixed factors
Specialisation
Increased efficiency of variable factors
All these factors
Diminishing returns to a factor arises because of ______.
imperfect substitution between factors
disturbing the optimum proportion of factor combinations
both imperfect substitution between factors and disturbing the optimum proportion of factor combinations
none of these
A rational produce will operate in which of the three stages of production:
stage 1
stage 3
stage 2
none of these
Law of variable proportion is related to ______.
short-run
long-run
very long-run
both short-run and long-run
______ states that as more and more units of variable factors are combined with the fixed factor, marginal product of the variable factor ultimately decreases.
Read the following two statements and mark the right combination from the given combinations:
Statement 1: In the short run production function, there are both fixed factors and variable factors.
Statement 2: Law of variable proportion operates in the long run.
Both the statements are true.
Both the statements are false.
Statement 1 is true, but Statement 2 is false.
Statement 1 is false, but Statement 2 is true.
From the following statements given in Column I and Column II, choose the correct pair of the statements.
| Column 1 | Column 2 |
| A. Fixed factor | 1. Technology can be changed |
| B. Variable factor | 2. Technology remains same |
| C. Short-run production | 3. Quantity cannot be changed in the short-run |
| D. Long-run production | 4. Quantity can be changed in the short-run |
A - 1, B - 2, C - 4, C - 3
A - 3, B - 4, C - 2, C - 1
A - 2, B - 3, C - 1, C - 4
A - 3, B - 4, C - 2, C - 1
Given below are two statements marked as Assertion (A) and Reason (R). Read the statements carefully and choose the correct option.
Assertion (A): In the first phase of the law of variable proportion, TP increases initially at an increasing rate and MP initially increases.
Reason (R): As the number of variable factors increases, the fixed factors are fully utilised and the efficiency of variable factors increases.
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true, but Reason (R) is false.
Assertion (A) is false, but Reason (R) is true.
Law of Variable Proportions is NOT applicable when ______.
all factor inputs increase in the same proportion.
the time period is short.
all the units of variable input are equally efficient.
technology remains constant.
Very Short Answer Questions (2 marks each)
Define short-run.
What do you mean by long-run?
Distinguish Between short-run and long-run.
What is meant by production function?
Explain briefly the two types of production function.
Distinguish between short-run and long-run production functions.
What is meant by ‘short-run’ production function?
Distinguish between short-run and long-run production functions.
What is meant by the total product?
Define marginal product.
What are Average product?
Give the meaning of returns to a factor.
As the variable input labour is increased by one unit, total output falls. What would you say about the marginal productivity of labour?
When the total product increases at a decreasing rate, what happens to the marginal product?
When total product increases at an increasing rate, what happens to the marginal product?
When total product to a variable factor reaches the maximum, what will be the marginal product?
When MP = 0, what is the level of TP?
When MP is negative, what happens to TP?
What is the MP at the point of inflexion?
When AP is constant, what is the relation between MP and AP?
How does the average product behave when marginal product is greater than the average product?
How does the average product behave when marginal product is less than the average product?
What is the general shape of MP curve and AP curve?
How is total product derived from the marginal product?
What is the shape of marginal product curve during the operation of law of diminishing returns?
At what point does the marginal product curve cut the average product curve?
What is the general shape of MP curve and AP curve?
What is the law of diminishing returns?
What is the law of increasing returns to factor?
What is constant returns to a factor?
State the law of variable proportions.
Give two assumptions of the law of variable proportions.
Mention two causes of increasing returns to a factor.
Mention two causes of decreasing returns to a factor.
State the three stages of production.
In which stage of production a producer will produce? Explain.
How do Total Product, Average Product and Marginal Product behave under the Law of Increasing Returns to a Factor? Briefly explain one reason for the operation of this law.
What is meant by returns to scale?
State the three kinds of returns to scale.
Give any two differences between returns to a factor and returns to scale.
Short Answer Questions (3 marks each)
Define production function.
Distinguish between short-run and long-run production functions.
State the three kinds of returns to scale.
Show, with suitable illustration, the difference between increasing returns to a variable factor and increasing returns to scale.
Give any two differences between returns to a factor and returns to scale.
Mention two causes of increasing returns to a factor.
Mention two causes of decreasing returns to a factor.
In which stage of production a producer will produce? Explain.
Long Answer Questions (6 marks each)
With the help of a suitable diagram, discuss the relationship between Average product and Marginal Product.
Explain the relationship between the marginal products and the total product of an input.
State and explain the law of diminishing returns with the help of an illustration.
Explain the law of variable proportions with the help of a diagram.
State the three stages of production.
Explain the law of variable proportions with the help of a diagram.
Explain the reasons behind the law of variable proportions.
Explain the reasons behind the law of variable proportions.
In which stage of production a producer will produce? Explain.
State the three stages of production.
Explain the reasons behind the law of variable proportions.
Give any two differences between returns to a factor and returns to scale.
The following is known about a firm:
| Units of labour input | 1 | 2 | 3 | 4 | 5 | 6 |
| Total Output (Units) | 50 | 110 | 150 | 180 | 180 | 150 |
State and briefly explain the law underlying changes in output as the input is changed. Also identify the various stages in the change in total product.
Thinking Beyond...
Law of diminishing returns to a factor is compatible with the law of increasing returns to scale. Do you agree? Explain.
Solutions for 7: Laws of Returns - Returns to a Factor and Returns to Scale
Frank solutions for Economics [English] Class 12 ISC chapter 7 - Laws of Returns - Returns to a Factor and Returns to Scale
Shaalaa.com has the CISCE Mathematics Economics [English] Class 12 ISC CISCE solutions in a manner that help students grasp basic concepts better and faster. The detailed, step-by-step solutions will help you understand the concepts better and clarify any confusion. Frank solutions for Mathematics Economics [English] Class 12 ISC CISCE 7 (Laws of Returns - Returns to a Factor and Returns to Scale) include all questions with answers and detailed explanations. This will clear students' doubts about questions and improve their application skills while preparing for board exams.
Further, we at Shaalaa.com provide such solutions so students can prepare for written exams. Frank textbook solutions can be a core help for self-study and provide excellent self-help guidance for students.
Concepts covered in Economics [English] Class 12 ISC chapter 7 Laws of Returns - Returns to a Factor and Returns to Scale are Concept of Production, Law of Variable Proportions, Production Function, Relationship between Average Product (AP) and Marginal Product (MP), Relationship between Total Product (TP) and Marginal Product (MP), Changes in Production, Product, Factors of Production, Explanation of the Law of Variable Proportions, Scale of Production, Economies of Scale, Diseconomies of Scale, Returns to a Factor - Laws of Returns to a Variable Factor, Returns to a Factor or Law of Returns, Types of Production Functions, Three Stages of Production, Stages of Operation and the Decision to Produce, Variation of Output in the Long Run - Returns to Scale, Concept of Indivisibility, Short-run and Long-run, Features of Production Function, Some Basic Concepts - Total, Average and Marginal Physical Products, Statement of the Law of Variable Proportions, Assumptions of the Law of Variable Proportions, Illustration of the Law of Variable Proportions, Conditions Or Causes of Applicability, Applicability of the Law of Variable Proportions, Law of Variable Proportions and Returns to Scale Compared.
Using Frank Economics [English] Class 12 ISC solutions Laws of Returns - Returns to a Factor and Returns to Scale exercise by students is an easy way to prepare for the exams, as they involve solutions arranged chapter-wise and also page-wise. The questions involved in Frank Solutions are essential questions that can be asked in the final exam. Maximum CISCE Economics [English] Class 12 ISC students prefer Frank Textbook Solutions to score more in exams.
Get the free view of Chapter 7, Laws of Returns - Returns to a Factor and Returns to Scale Economics [English] Class 12 ISC additional questions for Mathematics Economics [English] Class 12 ISC CISCE, and you can use Shaalaa.com to keep it handy for your exam preparation.
