EconomicsOnline Test

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 _______
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) 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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There are 75 questions to complete.

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