Chapter 3: Production Analysis March 9, 2024 Maven Leave a Comment Welcome to the Chapter 3: Production Analysis Quiz! This quiz is based on the book back questions. Name Email 1. 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 None 2. 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. None 3. 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. None 4. Product obtained from additional factors of production is termed as a. Marginal product b. Total product c. Average product d. Annual product None 5. The relationship between the price of a commodity and the supply of commodity is a. Negative b. Positive c. Zero d. Increase None 6. 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 None 7. If average product is decreasing, then marginal product a. must be greater than average product b. must be less than average product c. must be increasing d. both a and c None 8. Which of the following is not a characteristic of land? a. Its limited supply b. It is mobile c. Heterogeneous d. Gift of Nature None 9. Mention the economies reaped from inside the firm a. financial b. technical c. managerial d. all of the above None 10. Modern economists have propounded the law of a. Increasing returns b. decreasing returns c. Constant returns d. variable proportions None 11. Which factor is called the changing agent of the Society a. Labourer b. Land c. Organizer d. Capital None 12. Formula for calculating AP is a. ΔTP/N b. ΔTP/ΔN c. TP/MP d. TP/N None 13. 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 None 14. The functional relationship between “inputs” and “outputs” is called as a. Consumption Function b. Production Function c. Savings Function d. Investment Function None 15. Who said that one of the key of an entrepreneur is “uncertainty bearing” a. J.B.Clark b. Schumpeter c. Knight d. Adam Smith None 16. 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 Average Product a. 30 b. 6 c. 5 d. 24 None 17. An Iso-quant curve is also known as a. Inelastic Supply Curve b. Inelastic Demand Curve c. Equi-marginal Utility d. Equal Product Curve None 18. 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 None 19. The man-made physical goods used to produce other goods and services are referred to as a. Land b. Labour c. Capital d. Organization None 20. The primary factors of production are a. Labour and Organisation b. Labour and Capital c. Land and Capital d. Land and Labour None Time's up Related Posts:Chapter 2. Consumption AnalysisChapter 4: Cost and Revenue AnalysisChapter 6: Distribution AnalysisChapter 9: Correlation and Regression Analysis
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