CA Foundation Economics - Theory of Production Quiz

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Theory of Production Quiz 1

1 / 20

Which of the following statements is true?

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Which of the following is considered production in Economics?

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Which of the following is considered as production in economics?

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What is Production is Economics:

5 / 20

Production does not include work done ________.

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________ to exchange in the market is an essential component of production.

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According to ________, Production is the organized activity of transforming resources into finished products in the form of goods and services, and the objective of production is to satisfy the demand of such transformed “resources”.

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Production is defined as:

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In Economics, entire process of ________ is nothing but creation of utilities in the form of goods and services.

10 / 20

Which of the following is not a characteristics of Land?

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Which of the following is not a characteristic of land?

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Which of the following factors of production is a free gift of nature and refers to Natural resources?

13 / 20

________ are the factors or resources which make it possible to produce goods and services.

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Factors of production refer to :

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The total supply of Land is ________ from the point of view of the economy. However, it is relatively ________ from the point of view of a firm.

16 / 20

Which of the following is correct about Land?

17 / 20

No two pieces of land and alike. They differ in fertility and situation. Therefore, Land is ________.

18 / 20

Which of the following statement about factors of production is not true?

19 / 20

Which among the following is not a characteristic of land?

20 / 20

Labour force wants more ________

Your score is

The average score is 78%

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Theory of Production Quiz 2

1 / 20

Without the active participation of labour, land and capital may not produce anything. It means labour is factor.

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Labour is highly perishable in the sense that ________.

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The labour power or efficiency of labour depends upon the ________

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Which of the following is not a characteristic of labour?

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________ means a sustained increase in the stock of real capital in a Country.

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The three stages of capital forma-tion are :

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Which one of the following may be regarded as a part of social capital?

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________ Capital performs its function is production in a single use and is not available for future use.

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Human capital refers to:

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The most important function of an entrepreneur is to ________.

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Innovation theory of entrepreneur-ship is propounded by:

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An Entrepreneur undertakes which one of the following functions?

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Functions of the entrepreneur are:

14 / 20

Which one of the following statements is not correct?

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Which one of the following function is performed by entrepreneur?

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________ mobilizes factors of production, combines them in the right proportion, initiates the process of production and bears the risks involved in it.

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________ objective implies the profit maximizing behaviour of the firm.

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The basic minimum objective of all kinds of enterprises is to survive or to stay alive. It may be regarded as ________ objective of the enterprise.

19 / 20

Who has given the concept of Innovative Entrepreneurship?

20 / 20

According to ________, the true function of an entrepreneur is to introduce innovations.

Your score is

The average score is 88%

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Theory of Production Quiz 3

1 / 20

What is a production function?

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The production function is a rela-tionship between a given combination of inputs and:

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A production function is defined as the relationship between ________.

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Which of the following is the best definition of “production function”?

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Which of the following statements is true?

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Which function shows relationship between input and output?

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________ shows the overall output generated at a given level of input:

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The production function:

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Production function is:

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In the short run, the firm’s product curves show that ________

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In describing a given production technology, the short run is best described as lasting:

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To economists, the main difference between the short run and the long run is that:

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The short run, as economists use the phrase, is characterized by:

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Which one of the following is the assumption underlying any production function?

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Paul Douglas and Cobb studied the production function of the ________ manufacturing industries.

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In the long run, if a very small factory were to expand its scale of operations, it is likely that it would initially experience ________

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A fixed input is defined as ________.

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Long-run does not have:

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Long period production function is related to:

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In its original form, the Cobb- Douglas production function applies:

Your score is

The average score is 79%

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Theory of Production Quiz 4

1 / 20

In Cobb-Douglas production function, two inputs are:

2 / 20

What will be the total product when two labourers are hired according to the table given below?

No. of labourersTotal ProductMarginal product
0
1350350
2250

3 / 20

According to Cobb-Douglas pro-duction function, will get ________ returns to scale?

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The conclusion drawn from Cobb-Douglas production function is that labour contributed about ________ and capital about ________ of the increase in the manufacturing production.

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If Cobb-Douglas function is given by Q = KLaCb, then there will be ________ when (a+b) ________.

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The famous Cobb-Douglas production function is based on studies of ________ industries in the United States of America.

7 / 20

Use the following diagram to answer the question given below it

The marginal physical product of the third unit of labour is ________, the MP of the ________ labour is Negative

8 / 20

Suppose the first four units of a variable input generate corresponding total outputs of 200, 350, 450, 500. The marginal product of the third unit of input is:

9 / 20

Average product is defined as ________

10 / 20

________ is the total output resulting from the efforts of all the fac-tors of production combined together at any time.

11 / 20

Consider the following table:

LabourTotal OutputMarginal Product
0
1100100
280
3240

12 / 20

Which of the following is Correct?

13 / 20

Marginal product, mathematically, is the slope of the ________.

14 / 20

The production process described below exhibits.

Number of WorkersOutput
00
123
240
350

15 / 20

Suppose the first four units of a variable input generate corresponding total output of 150, 200, 350, 550. What will be the marginal product of the third unit of input?

16 / 20

At the point of inflexion, the marginal product is:

17 / 20

Identify the correct statement:

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The marginal product curve is above the average product curve when the average product is:

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When average product rises as a result of an increase in the quantity of variable factor, marginal product is:

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Marginal, average and total product of a firm in the short run will not comprise with ________.

Your score is

The average score is 64%

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Theory of Production Quiz 5

1 / 20

If the marginal product of labour is below the average product of labour, it must be true that:

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Law of variable proportion is valid when:

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In the production of wheat, all of the following are variable factors that are used by the farmer except:

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If the marginal product of labour is below the average product of labour. It must be true that:

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The marginal, average, and total product curves encountered by the firm producing in the short run exhibit all of the following relationships except:

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The average product of labour is maximized when marginal product of labour:

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During 2nd stage of law of Diminishing returns:

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

9 / 20

Law of increasing returns is applicable because of ________.

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The Law of Variable Proportions is associated with:

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Production activity in the short period is analysed with the help of:

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In the third of the three stages of production:

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Law of diminishing returns is applicable in:

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The phenomenon of diminishing returns rests upon the ________ of the fixed factor:

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Diminishing marginal returns implies:

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A rational producer will produce in the stage in which marginal product is positive and:

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The concept of Returns to Scale is related with:

18 / 20

Diminishing returns occur:

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The “law of diminishing returns” applies to ________.

20 / 20

Diminishing marginal returns implies ________

Your score is

The average score is 63%

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Theory of Production Quiz 6

1 / 21

Increasing returns to scale can be explained in terms of:

2 / 21

Consider the following combinations of inputs and outputs:
This production technology satisfies

LabourCapitalOutput
5101
6122
7143
8164
9185
10206

3 / 21

Which of the following is the reason of the working of law of increasing returns?

4 / 21

Returns to scale will said to be in operation when quantity of :

5 / 21

Which of the following statements describes increasing returns to scale?

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Increasing returns to scale occurs due to:

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Increase in all input leading to less than proportional increase in output is called ________.

8 / 21

A change in scale means that ________ factors of production are increased or decreased in the same production.

9 / 21

In Cobb-Douglas Production function[Q = KLaCb], there will be increasing returns to scale if :

10 / 21

If decreasing returns to scale are present, then if all inputs are increased by 10% then:

11 / 21

Linear homogeneous production function is based on:

12 / 21

ISO quants are equal to:

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When output increase in a smaller proportion with an increase in all inputs ________ returns to scale set in.

14 / 21

With a view to increase his production, Hariharan a manufacturer of shoes, increases all the factors of production in his unit by 100%. But at the end of the year, he finds that instead of an increase of 100%, his production has increased by only 80%. Which law of returns to scale is operating in this case?

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Constant Returns to Scale are also called as ________ Production Function.

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When output decreases by 20% due to increase in inputs by 20%, this stage is called the law of ________.

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Which of the following statement is true in relation to an ISO Quant Curve?

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ISO quants are negatively sloped & ________ to the origin due to ________ Marginal Rate of Tech-nical Substitution (MRTS).

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An ISO quant shows ________.

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An ISO quant is ________ to an ISO cost line at equilibrium point:

21 / 21

ISO quants are also known as:

Your score is

The average score is 55%

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