/23 0 votes, 0 avg 483 Created on May 26, 2023 Economics Quiz Economics quiz helps us to increase our knowledge 1 / 23 Long-run does not have: Average Cost Total Cost Fixed Cost Variable Cost 2 / 23 Which of the following statements is true? After the inflection point of the production function, a greater use of the variable input induces a reduction in the marginal product. Before reaching the inevitable point of decreasing marginal returns, the quantity of output obtained can increase at an increasing rate. The first stage corresponds to the range in which the AP is increasing as a result of utilizing increasing quantities of variable inputs. All the above 3 / 23 ________ shows the overall output generated at a given level of input: Cost function Production function ISO cost Marginal rate of technical substitution 4 / 23 What is a production function? Technical relationship between physical inputs and physical output Relationship between fixed factors of production and variable factors of production Relationship between a factor of production and the utility created by it Relationship between quantity of output produced and time taken to produce the output 5 / 23 In the short run, the firm’s product curves show that ________ Total product begins to decrease when average product begins to decrease but continues to increase at a decreasing rate. When marginal product is equal to average product, average product is decreasing but at its highest. When the marginal product curve cuts the average product curve from below, the average product is equal to marginal product. In stage two, total product increases at a diminishing rate and reaches maximum at the end of this stage. 6 / 23 In the long run, if a very small factory were to expand its scale of operations, it is likely that it would initially experience ________ An increase in pollution level Diseconomies of scale Economies of scale Constant returns to scale 7 / 23 Which of the following is considered as production in economics? Helping a blind person in crossing the road Group dance performance in a college annual function Holding a child who is falling from a wall Performing an art in a theatre 8 / 23 Which one of the following is the assumption underlying any production function? Relationship between inputs and outputs exists for a period of time There is a given “State -of- the act” in the production technology Whatever input combinations one included in a particular function, the output resulting from their utilization is at the maximum level All of the above 9 / 23 The production function: Is the relationship between the quantity of inputs used and the resulting quantity of product Tells us the maximum attainable output from a given combination of inputs Expresses the technological relationship between inputs and output of a product All the above 10 / 23 A production function is defined as the relationship between ________. The quantity of physical inputs and physical output of a firm Stock of inputs and stock of output Prices of inputs and output Price and supply of a firm 11 / 23 Paul Douglas and Cobb studied the production function of the ________ manufacturing industries. American Japanese British Asian 12 / 23 Which of the following is considered production in Economics? Tilling of soil Singing a song before friends Preventing a child from falling into a manhole on the road Painting a picture for pleasure 13 / 23 In its original form, the Cobb- Douglas production function applies: To individual firm To selected Firms To whole of manufacturing in the USA None of the above 14 / 23 Which function shows relationship between input and output? Consumption function Investment function Production function Cost function 15 / 23 The short run, as economists use the phrase, is characterized by: At least one fixed factor of pro-duction and firms neither leaving nor entering the industry Generally a period which is shorter than one vear All factors of production are fixed and no variable inputs All inputs are variable and pro-duction is done in less than one year 16 / 23 Long period production function is related to: Law of variable proportions Laws of returns to scale Law of diminishing returns None of the above 17 / 23 What is Production is Economics: Creating/Addition of Utility Production of food grains Creation of services Manufacturing of goods 18 / 23 The production function is a rela-tionship between a given combination of inputs and: Another combination that yields the same output The highest resulting output The increase in output generated by one-unit increase in one output All levels of output that can be generated by those inputs 19 / 23 Which of the following is the best definition of “production function”? The relationship between market price and quantity supplied. The relationship between the firm’s total revenue and the cost of production. The relationship between the quantities of inputs needed to produce a given level of output. The relationship between the quantity of inputs and the firm’s marginal cost of production. 20 / 23 A fixed input is defined as ________. That input whose quantity can be quickly changed in the short run, in response to the desire of the company to change its production. That input whose quantity cannot be quickly changed in the short run, in response to the desire of the company to change its production. That input whose quantities can be easily changed in response to the desire to increase or reduce the level of production. That input whose demand can be easily changed in response to the desire to increase or reduce the level of production. 21 / 23 In describing a given production technology, the short run is best described as lasting: Up to six months from now Up to five years from now As long as all inputs are fixed As long as at least one input is fixed 22 / 23 Production function is: Purely a technical relationship between input & output Purely an economic relationship between input & output Both the technical &economical relationship between input & output None of the above 23 / 23 To economists, the main difference between the short run and the long run is that: In the short run all inputs are fixed, while in the long run all inputs are variable In the short run the firm varies all of its inputs to find the least-cost combination of inputs In the short run, at least one of the firm’s input levels is fixed In the long run, the firm is making a constrained decision about how to use existing plant and equip¬ment efficiently Your score is LinkedIn Facebook Twitter VKontakte 0% Restart quiz Please rate this quiz Send feedback
