Production Analysis

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Production Analysis

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Question 1

The primary factors of production are:

A	Labour and Organisation
B	Labour and Capital
C	Land and Capital
D	Land and Labour.

Question 2

The man-made physical goods used to produce other goods and services are referred to as.

A	Land
B	Labour
C	Capital
D	Organization.

Question 3

Formula for calculating AP is

A	ΔTP/N
B	ΔTP/ΔN
C	TP/MP
D	TP/N

Question 4

Which factor is called the changing agent of the Society

A	Labourer
B	Land
C	Organizer
D	Capital

Question 5

Who said, that one of the key of an entrepreneur is “uncertainty- bearing”.

A	J.B.Clark
B	Schumpeter
C	Knight
D	Adam Smith

Question 6

The functional relationship between “inputs” and “outputs” is called as

A	Consumption Function
B	Production Function
C	Savings Function
D	Investment Function

Question 7

In a firm 5 units of factors produce 24units of the product. When the number of factor increases by one, the production increases to 30 units. Calculate the Avarage Product.

A	30
B	6
C	5
D	24

Question 8

The short-run production is studied through

A	The Laws of Returns to Scale
B	The Law of Variable Proportions
C	Iso-quants
D	Law of Demand

Question 9

The long-run production function is explained by

A	Law of Demand
B	Law of Supply
C	Returns to Scale
D	Law of Variable Proportions

Question 10

An Iso-quant curve is also known as

A	Inelastic Supply Curve
B	Inelastic Demand Curve
C	Equi-marginal Utility
D	Equal Product Curve

Question 11

Mention the economies reaped from inside the firm

A	financial
B	technical
C	managerial
D	all of the above

Question 12

Cobb-Douglas production function assumes

A	Increasing returns to scale
B	Diminishing returns to scale
C	Constant returns to scale
D	All of the above

Question 13

Name the returns to scale when the output increases by more than 5%, for a 5% increase in the inputs,

A	Increasing returns to scale
B	decreasing returns to scale
C	Constant returns to scale
D	All of the above

Question 14

Which of the following is not a characteristic of land?

A	Its limited supply
B	It is mobile
C	Heterogeneous
D	Gift of Nature

Question 15

Product obtained from additional factors of production is termed as

A	Marginal product
B	Total product
C	Average product
D	Annual product

Question 16

odern economists have propounded the law of

A	Increasing returns
B	decreasing returns
C	Constant returns
D	variable proportions

Question 17

Producer’s equilibrium is achieved at the point where:

A	Marginal rate of technical substitution(MRTS) is greater than the price ratio
B	MRTS is lesser than the price ratio
C	MRTS and price ratio are equal to each other
D	The slopes of isoquant and isocost lines are different

Question 18

The relationship between the price of a commodity and the supply of commodity is

A	Negative
B	Positive
C	Zero
D	Increase

Question 19

If average product is decreasing, then marginal product

A	must be grater than average product
B	must be less than average product
C	must be increasing
D	both a and c

Question 20

A production function measures the relation between

A	input prices and output prices
B	input prices and the quantity of output
C	the quantity of inputs and the quantity of output
D	the quantity of inputs and input prices.

Question 21

_____ is facilitated by transport and communication systems.

A	Time utilities
B	Place utilities
C	Form utilities
D	Possession Utilities

Question 22

____________ said that ‘exertion of body or mind’ results in labour

A	Alfred Marshall
B	Robbins
C	Adam Smith
D	J.M.Keynes

Question 23

Annual income flows are called ________

A	Annual cost
B	Minimum cost
C	Annuities
D	Annual income

Question 24

___________ is a free gift of nature.

A	Land
B	Organisation
C	Capital
D	All of these

Question 25

______ may be classified in to five kinds.

A	External Economies
B	Economies of scale
C	Internal Economies
D	Modern Economy

Question 26

______ is the other name given for factor of production

A	Inputs
B	Outputs
C	Exertion
D	Formation

Question 27

________ faces both risks and uncertainties

A	Entrepreneur
B	Labour
C	Land
D	None of these

Question 28

_____ represent human capital

A	Money
B	Efficiency
C	Hard work
D	All the above

Question 29

Education and training given to labour is _________

A	Money capital
B	Human capital
C	Physical capital
D	None of the these

Question 30

Accumulation of more and more physical capital is called ________

A	Physical capital formation
B	Money capital
C	Labour and capital
D	Human capital

Question 31

Production means overall increase in the creation of ___________

A	Exchange
B	Distribution
C	Utility
D	Demand

Question 32

The technical relationship that obtains between inputs and outputs is known as

A	Factors of production
B	Production function
C	Entrepreneurial function
D	None of these

Question 33

Utility is a _________ subjective

A	Social concept
B	Psychological concept
C	Political concept
D	Scientific concept

Question 34

The long run production is analysed by using two concept ________ and _______

A	ISO quant return to scale
B	Decreasing and increasing return to scale
C	Increasing and diminishing returns
D	None of these

Question 35

Labour means physical ________

A	Exertion
B	Elastic
C	Physical capital formation
D	Entrepreneur

Question 36

Division of labour means ___

A	Dividing the process of production
B	Dividing labours into age groups
C	Dividing wages to the labour
D	None of these

Question 37

Bank deposits, shares, debentures and other monetary instruments are called ______

A	Money capital
B	Human capital
C	Physical capital
D	None of these

Question 38

__________ cannot be separated from labourer

A	Labour
B	Organisation
C	Time
D	Money

Question 39

________ is the primary factor of production

A	Man
B	Time
C	Money
D	Organisation

Question 40

_______ attract new customers

A	Producer
B	Labour
C	Successful entrepreneur
D	None of these

Question 41

What is ‘Production’ in economics?

A	Creation/addition to the value of output
B	Production of food grains
C	Creation of servives
D	Manufacturing of goods

Question 42

When total product falls, then __________

A	Average product is equal to zero
B	Marginal product is equal to zero
C	Marginal product is negative
D	Average product continues to rise

Question 43

In the first stage of law of variable proportions, total product increases at an_______

A	Decreasing rate
B	Increasing rate
C	Constant rate
D	Both (a) and (b)

Question 44

At the point of inflexion, the marginal product is _________

A	Increasing
B	Decreasing
C	Maximum
D	Negative

Question 45

MP = _______
(a) TP_n – TP_n-1(b) TC_n – TC_n-1 (c) TP/Q (d) TU_n – TU_n-1

A	a
B	b
C	c
D	d

Question 46

______ creates utility

A	Consumption
B	Production
C	Distribution
D	Exchange

Question 47

___ process creates economic well being

A	Production
B	Consumption
C	Public finance
D	Distribution

Question 48

Production is the result of co-operation of ________ factors of production.

A	One
B	Two
C	Three
D	Four

Question 49

_______ of production mean resources used in the process of production of commodities

A	Features
B	Assumption
C	Factors
D	Distribution

Question 50

Land and Labour are the __________ factors of production

A	Primary
B	Secondary
C	Teritary
D	All of these

Question 51

The saved amount is called as ____

A	Income
B	Cost
C	Expenditure
D	Capital

Question 52

_______ is a special form of labour

A	Capital
B	Land
C	Organisation
D	None of these

Question 53

Capital and organization are the ____________ factors of production

A	Primary
B	Secondary
C	Tertiary
D	All of these

Question 54

Land is subject to ________

A	Law of Demand
B	Law of Variable proportion
C	Law of Diminishing returns
D	Law of Returns to scale

Question 55

___________ is the active factor of production

A	Labour
B	Land
C	Capital
D	None of these

Question 56

The man behind organizing the business called s __________

A	Organizer
B	Entrepreneur
C	Both (a) and (b)
D	None of these

Question 57

A successful entrepreneur is always an innovators’ who said this?

A	JosephSchumpeter
B	Marshall
C	Bohm – Bawerk
D	George J. Stigler

Question 58

Production function may be classified into _________

A	One
B	Two
C	Three
D	Four

Question 59

TP = _____

(a) TP/N (b) AP x N (c) (d) TP_n – TP_n-1

A	A
B	B
C	C
D	D

Question 60

AP = ________

(a) TP/N (b) TP_n – TPn_-1 (c) (d) AP x N

A	A
B	B
C	C
D	D

Question 61

MP = ______

(a) TP/N (b) TP_n – TP_n-1 (c) Both (a) and (b) (d) None of these

A	A
B	B
C	C
D	D

Question 62

Total product increases upto the point where marginal product is __________

A	One
B	Two
C	Infinity
D	Zero

Question 63

The tendency of total product to increase at an increasing rate stop at point “A” this point is known as ___________

A	Equilibrium
B	Keynesian cross
C	point of inflexion
D	All the above

Question 64

All inputs are increased by one percent, output increases exactly by one percent is ______

A	Increasing returns to scale
B	Constant returns to scale
C	Decreasing returns to scale
D	All the above

Question 65

Economics are broadly divided into _______ types.

A	One
B	Two
C	Three
D	Four

Question 66

Economies of scale _________ the cost of production and diseconomies of scale _____ the cost of production.

A	Reduces, increases
B	Reduces, reduces
C	Increases, increases
D	Increase, reduces

Question 67

The two words “ISO” and “quant” are derived from ______ language

A	Latin
B	French
C	Greek
D	All the above

Question 68

The ISO-Quant is also called as the ______

A	Equal product curve
B	Product indifference curve
C	Both (a) and (b)
D	None of these

Question 69

The ISO-quant curve slopes downwards from left to right due to ________

A	Law of diminishing marginal utility (LDMU)
B	Marginal rate of technical substitution (MRTS)
C	Law of diminishing marginal rate substitution
D	All of above

Question 70

The Cobb-Douglas production function was developed by ______

A	Charles W.Cobb and Paul H.Douglas
B	E.H.Chamberlin
C	J.M.Keynes
D	Adam Smith

Question 71

The Cobb-Douglas production function can be expressed as ___________

(a) Potential price – actual price (b) MRT_xy =PX/PY
(c) Q = AL^a K^b (d) a + b = 1

A	A
B	B
C	C
D	D

Question 72

a + b < 1 is _________

A	Increasing returns to scale
B	Constant returns to scale
C	Decreasing returns to scale
D	None of these

Question 73

The degree of responsiveness of change in supply to change in price is called ______

A	Law of supply
B	Elasticity supply
C	Elasticity demand
D	Production

Question 74

There are ____________________ types of elasticity supply

A	One
B	Two
C	Three
D	Five

Question 75

Factors governing elasticity supply are ____

A	Nature of the commodity
B	Cost of production
C	Time factor
D	All the above

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Production Analysis

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