# Production Analysis

## 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 _______
 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) TPn – TPn-1                           (b) TCn – TCn-1              (c) TP/Q           (d) TUn – TUn-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) TPn – TPn-1
 A A B B C C D D
 Question 60
AP = ________
• (a)          TP/N                  (b) TPn – TPn-1             (c)                           (d) AP x N
 A A B B C C D D
 Question 61
MP = ______
•             (a)  TP/N                        (b) TPn – TPn-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) MRTxy =PX/PY
•             (c) Q = ALa Kb                                                 (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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