Download App

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

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsProduction and cost1 Mark
Question
State giving reasons, whether the following statements are true or false:
When there are diminishing returns to a factor, Total Product always decreases?
✓

Answer

False.
Explanation:
In a situation of diminishing returns to a factor, Marginal Product tends to fall, which implies that Total Product should be increasing though at a diminishing rate.

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 statement are True or False.
If there is decrease in supply, producer moves downward along the same supply curve?
→
National Income of a country is a stock concept.
→
When in order to buy 1 US dollar ₹ 65 are needed instead of ₹ 60 earlier, domestic currency shows appreciation. (True/ False)
→
State whether the following statements are true or false. Give reasons for your answer:
The value of marginal propensity to save can never be negative.
→
Giving reasons, state whenever the following statements are true or false:
Average Product will increase only when Marginal Product increases.
→
Scarcity of resources arises only in poor countries. (True/ False)
→
Giving reasons, state whether the following statements are true or false.
If income of the buyer decreases, demand for inferior goods decreases.
→
Giving reasons, state whether the following statements are true or false.
Purchase of car by a consumer is a part of gross domestic capital formation.
→
The Salaries received by Indians working in branches of foreign banks in India are include in the estimation of domestic income. (True/ False).
→
Foreign remittances are a stock concept.
→