Download App

Production and cost — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsProduction and cost1 Mark
Question
Giving reasons, state whether the following statement are true or false:
When there are diminishing returns to a factor, total product always decreases.
✓

Answer

False.
Explanation:
When there are diminishing returns to a factor, total product always does not decrease. Total product will decrease only when marginal product is negative. Total product will not decrease if Marginal Product is positive even if it is declining.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "True/False" from Production and cost→Production and cost — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

Giving reasons, state whether the following statements are true or false.
Economy can never operate outside PPC with the given resources and technology.
→
Money supply in the economy includes only notes and coins issued by the central bank. (True/ False)
→
Giving reasons, state whether the following statements are true or false.
Consumption of food grains by farmer himself is not a part of national output.
→
State giving reasons, whether the following statements are true or false:
The difference between Total Cost and Total Variable Cost falls with increase in output.
→
Giving reasons, state whether the following statements are true or false.
Under marginal requirement, the Reserve Bank of India gives directions to other banks to channelise credit to priority sectors.
→
Giving reasons, state whether the following statements are true or false.
In case of indifference curve consumer is in equilibrium if $\text{MRS}_\text{xy}=\frac{\text{P}_\text{x}}{\text{P}_\text{y}}$.
→
Giving reasons, state whether the following statements are true or false.
Price elasticity of demand explains qualitative relationship between price and demand.
→
Giving reason, state whether the following statement are true or false.
Accommodating items are also known as 'above the line' items.
→
Capital receipts do not reduce assets of the government. (True/ False)
→
Are the following statement true or false? Give reason.
In spot market sale and purchase of foreign currency is settled on a specified future date.
→