EconomicsOnline Test
Production Analysis
Production Analysis
Congratulations - you have completed Production Analysis.
You scored %%SCORE%% out of %%TOTAL%%.
Your performance has been rated as %%RATING%%
Your answers are highlighted below.
Question 1 |
The primary factors of production are:
Labour and Organisation | |
Labour and Capital | |
Land and Capital | |
Land and Labour. |
Question 2 |
The man-made physical goods used to produce other goods and services are referred to
as.
Land | |
Labour | |
Capital | |
Organization. |
Question 3 |
Formula for calculating AP is
ΔTP/N | |
ΔTP/ΔN | |
TP/MP | |
TP/N |
Question 4 |
Which factor is called the changing agent of the Society
Labourer | |
Land | |
Organizer | |
Capital |
Question 5 |
Who said, that one of the key of an entrepreneur is “uncertainty- bearing”.
J.B.Clark | |
Schumpeter | |
Knight | |
Adam Smith |
Question 6 |
The functional relationship between “inputs” and “outputs” is called as
Consumption Function | |
Production Function | |
Savings Function | |
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.
30 | |
6 | |
5 | |
24 |
Question 8 |
The short-run production is studied through
The Laws of Returns to Scale | |
The Law of Variable Proportions | |
Iso-quants | |
Law of Demand |
Question 9 |
The long-run production function is explained by
Law of Demand | |
Law of Supply | |
Returns to Scale | |
Law of Variable Proportions |
Question 10 |
An Iso-quant curve is also known as
Inelastic Supply Curve | |
Inelastic Demand Curve | |
Equi-marginal Utility | |
Equal Product Curve |
Question 11 |
Mention the economies reaped from inside the firm
financial | |
technical | |
managerial | |
all of the above |
Question 12 |
Cobb-Douglas production function assumes
Increasing returns to scale | |
Diminishing returns to scale | |
Constant returns to scale | |
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,
Increasing returns to scale | |
decreasing returns to scale | |
Constant returns to scale | |
All of the above |
Question 14 |
Which of the following is not a characteristic of land?
Its limited supply | |
It is mobile | |
Heterogeneous | |
Gift of Nature |
Question 15 |
Product obtained from additional factors of production is termed as
Marginal product | |
Total product | |
Average product | |
Annual product |
Question 16 |
odern economists have propounded the law of
Increasing returns | |
decreasing returns | |
Constant returns | |
variable proportions |
Question 17 |
Producer’s equilibrium is achieved at the point where:
Marginal rate of technical substitution(MRTS) is greater than the price ratio | |
MRTS is lesser than the price ratio | |
MRTS and price ratio are equal to each other | |
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
Negative | |
Positive | |
Zero | |
Increase |
Question 19 |
If average product is decreasing, then marginal product
must be grater than average product | |
must be less than average product | |
must be increasing | |
both a and c |
Question 20 |
A production function measures the relation between
input prices and output prices | |
input prices and the quantity of output | |
the quantity of inputs and the quantity of output | |
the quantity of inputs and input prices. |
Question 21 |
_____ is facilitated by transport and communication systems.
Time utilities | |
Place utilities | |
Form utilities | |
Possession Utilities |
Question 22 |
____________ said that ‘exertion of body or mind’ results in labour
Alfred Marshall | |
Robbins | |
Adam Smith | |
J.M.Keynes |
Question 23 |
Annual income flows are called ________
Annual cost | |
Minimum cost | |
Annuities | |
Annual income |
Question 24 |
___________ is a free gift of nature.
Land | |
Organisation | |
Capital | |
All of these |
Question 25 |
______ may be classified in to five kinds.
External Economies | |
Economies of scale | |
Internal Economies | |
Modern Economy |
Question 26 |
______ is the other name given for factor of production
Inputs | |
Outputs | |
Exertion | |
Formation |
Question 27 |
________ faces both risks and uncertainties
Entrepreneur | |
Labour | |
Land | |
None of these |
Question 28 |
_____ represent human capital
Money | |
Efficiency | |
Hard work | |
All the above |
Question 29 |
Education and training given to labour is _________
Money capital | |
Human capital | |
Physical capital | |
None of the these |
Question 30 |
Accumulation of more and more physical capital is called ________
Physical capital formation | |
Money capital | |
Labour and capital | |
Human capital |
Question 31 |
Production means overall increase in the creation of ___________
Exchange | |
Distribution | |
Utility | |
Demand |
Question 32 |
The technical relationship that obtains between inputs and outputs is known as
Factors of production | |
Production function | |
Entrepreneurial function | |
None of these |
Question 33 |
Utility is a _________ subjective
Social concept | |
Psychological concept | |
Political concept | |
Scientific concept |
Question 34 |
The long run production is analysed by using two concept ________ and _______
ISO quant return to scale | |
Decreasing and increasing return to scale | |
Increasing and diminishing returns | |
None of these |
Question 35 |
Labour means physical ________
Exertion | |
Elastic | |
Physical capital formation | |
Entrepreneur |
Question 36 |
Division of labour means ___
Dividing the process of production | |
Dividing labours into age groups | |
Dividing wages to the labour | |
None of these |
Question 37 |
Bank deposits, shares, debentures and other monetary instruments are called ______
Money capital | |
Human capital | |
Physical capital | |
None of these |
Question 38 |
__________ cannot be separated from labourer
Labour | |
Organisation | |
Time | |
Money |
Question 39 |
________ is the primary factor of production
Man | |
Time | |
Money | |
Organisation |
Question 40 |
_______ attract new customers
Producer | |
Labour | |
Successful entrepreneur | |
None of these |
Question 41 |
What is ‘Production’ in economics?
Creation/addition to the value of output | |
Production of food grains | |
Creation of servives | |
Manufacturing of goods |
Question 42 |
When total product falls, then __________
Average product is equal to zero | |
Marginal product is equal to zero | |
Marginal product is negative | |
Average product continues to rise |
Question 43 |
In the first stage of law of variable proportions, total product increases at an_______
Decreasing rate | |
Increasing rate | |
Constant rate | |
Both (a) and (b) |
Question 44 |
At the point of inflexion, the marginal product is _________
Increasing | |
Decreasing | |
Maximum | |
Negative |
Question 45 |
- MP = _______
- (a) TPn – TPn-1 (b) TCn – TCn-1 (c) TP/Q (d) TUn – TUn-1
a | |
b | |
c | |
d |
Question 46 |
______ creates utility
Consumption | |
Production | |
Distribution | |
Exchange |
Question 47 |
___ process creates economic well being
Production | |
Consumption | |
Public finance | |
Distribution |
Question 48 |
Production is the result of co-operation of ________ factors of production.
One | |
Two | |
Three | |
Four |
Question 49 |
_______ of production mean resources used in the process of production of commodities
Features | |
Assumption | |
Factors | |
Distribution |
Question 50 |
Land and Labour are the __________ factors of production
Primary | |
Secondary | |
Teritary | |
All of these |
Question 51 |
The saved amount is called as ____
Income | |
Cost | |
Expenditure | |
Capital |
Question 52 |
_______ is a special form of labour
Capital | |
Land | |
Organisation | |
None of these |
Question 53 |
Capital and organization are the ____________ factors of production
Primary | |
Secondary | |
Tertiary | |
All of these |
Question 54 |
Land is subject to ________
Law of Demand | |
Law of Variable proportion | |
Law of Diminishing returns | |
Law of Returns to scale |
Question 55 |
___________ is the active factor of production
Labour | |
Land | |
Capital | |
None of these |
Question 56 |
The man behind organizing the business called s __________
Organizer | |
Entrepreneur | |
Both (a) and (b) | |
None of these |
Question 57 |
A successful entrepreneur is always an innovators’ who said this?
JosephSchumpeter | |
Marshall | |
Bohm – Bawerk | |
George J. Stigler |
Question 58 |
Production function may be classified into _________
One | |
Two | |
Three | |
Four |
Question 59 |
TP = _____
- (a) TP/N (b) AP x N (c) (d) TPn – TPn-1
A | |
B | |
C | |
D |
Question 60 |
AP = ________
- (a) TP/N (b) TPn – TPn-1 (c) (d) AP x N
A | |
B | |
C | |
D |
Question 61 |
MP = ______
- (a) TP/N (b) TPn – TPn-1 (c) Both (a) and (b) (d) None of these
A | |
B | |
C | |
D |
Question 62 |
Total product increases upto the point where marginal product is __________
One | |
Two | |
Infinity | |
Zero |
Question 63 |
The tendency of total product to increase at an increasing rate stop at point “A” this point is known as ___________
Equilibrium | |
Keynesian cross | |
point of inflexion | |
All the above |
Question 64 |
All inputs are increased by one percent, output increases exactly by one percent is ______
Increasing returns to scale | |
Constant returns to scale | |
Decreasing returns to scale | |
All the above |
Question 65 |
Economics are broadly divided into _______ types.
One | |
Two | |
Three | |
Four |
Question 66 |
Economies of scale _________ the cost of production and diseconomies of scale _____ the cost of production.
Reduces, increases | |
Reduces, reduces | |
Increases, increases | |
Increase, reduces |
Question 67 |
The two words “ISO” and “quant” are derived from ______ language
Latin | |
French | |
Greek | |
All the above |
Question 68 |
The ISO-Quant is also called as the ______
Equal product curve | |
Product indifference curve | |
Both (a) and (b) | |
None of these |
Question 69 |
The ISO-quant curve slopes downwards from left to right due to ________
Law of diminishing marginal utility (LDMU) | |
Marginal rate of technical substitution (MRTS) | |
Law of diminishing marginal rate substitution | |
All of above |
Question 70 |
The Cobb-Douglas production function was developed by ______
Charles W.Cobb and Paul H.Douglas | |
E.H.Chamberlin | |
J.M.Keynes | |
Adam Smith |
Question 71 |
The Cobb-Douglas production function can be expressed as ___________
- (a) Potential price – actual price (b) MRTxy =PX/PY
- (c) Q = ALa Kb (d) a + b = 1
A | |
B | |
C | |
D |
Question 72 |
a + b < 1 is _________
Increasing returns to scale | |
Constant returns to scale | |
Decreasing returns to scale | |
None of these |
Question 73 |
The degree of responsiveness of change in supply to change in price is called ______
Law of supply | |
Elasticity supply | |
Elasticity demand | |
Production |
Question 74 |
There are ____________________ types of elasticity supply
One | |
Two | |
Three | |
Five |
Question 75 |
Factors governing elasticity supply are ____
Nature of the commodity | |
Cost of production | |
Time factor | |
All the above |
Once you are finished, click the button below. Any items you have not completed will be marked incorrect.
There are 75 questions to complete.