#1. Which of the following is considered production in Economics?
#2. Identify the correct statement
#3. Which of the following is not a characteristic of land?
#4. Which of the following statements is true?
#5. In the production of wheat, all of the following are variable factors that are used by the farmer except
#6. The marginal product of a variable input is best described as
#7. Diminishing marginal returns implies:
#8. The short run, as economists use the phrase is characterized by
#9. The marginal average, and total product curves encountered by the firm producing in the short run exhibit all of the following relationships except:
#10. To economists, the main difference between the short run and the long run is that:
#11. Which of the following is the best definition of “production function”?
#12. The “law of diminishing returns” applies to:
#13. Diminishing returns occur:
#14. What is the total output when 2 hours of labour are employed?( as per info given on pg no 3.45)
#15. What is the marginal product of the third hour of labour?pg no 3.45 qno 15
#16. What is the average product of the first three hours of labour? pg no 3.45 qno 16
#17. Which cost increases continuously with the increase in production?
#18. Which of the following cost curves is never ‘U’ shaped?
#19. Total cost in the short run is classified into fixed costs and variable costs. Which one of the following is a variable cost?
#20. In the short run, when the output of a firm increases, its average fixed cost:
#21. Which one of the following is also known as planning curve?
#22. If a firm moves from one point on a production isoquant to another, which of the following will not happen
#23. With which of the following is the concept of marginal cost closely related?
#24. Which of the following statements is correct?
#25. Which of the following is an example of “explicit cost”?
#26. Which of the following is an example of an “implicit cost”?
#27. The average fixed cost of 2 units of output is : as per info given on pgno 3.47 qno 27
#28. The marginal cost of the sixth unit of output is pg no 3.47 qno 28
#29. Diminishing marginal returns start to occur between units: pg no 3.47 qno 29
#30. Marginal cost is defined as:
#31. Which of the following is true of the relationship between the marginal cost function and the average cost function?
#32. Which of the following statements is true of the relationship among the average cost functions?
#33. Which of the following is not a determinant of the firm’s cost function?
#34. Which of the following statements is correct concerning the relationships among the firm’s cost functions?
#35. Suppose output increases in the short run. Total cost will:
#36. Which of the following statements concerning the long-run average cost curve is false?
#37. The negatively-sloped (i.e. falling) part of the long-run average total cost curve is due to which of the following?
#38. The positively sloped (i.e. rising) part of the long run average total cost curve is due to which of the following?
#39. A firm’s average total cost is ` 300 at 5 units of output and ` 320 at 6 units of output. The marginal cost of producing the 6th unit is :
#40. A firm producing 7 units of output has an average total cost of ` 150 and has to pay ` 350 to its fixed factors of production whether it produces or not. How much of the average total cost is made up of variable costs?
#41. A firm has a variable cost of ` 1000 at 5 units of output. If fixed costs are ` 400, what will be the average total cost at 5 units of output?
#42. A firm’s average fixed cost is ` 20 at 6 units of output. What will it be at 4 units of output?
#43. Which of the following statements is true?
#44. Which of the following is a function of an entrepreneur?
#45. In describing a given production technology, the short run is best described as lasting:
#46. If decreasing returns to scale are present, then if all inputs are increased by 10% then:
#47. The production function is a relationship between a given combination of inputs and:
#48. If the marginal product of labour is below the average product of labour, it must be true that:
#49. The average product of labour is maximized when marginal product of labour:
#50. The law of variable proportions is drawn under all of the assumptions mentioned below except the assumption that:
#51. What is a production function?
#52. Laws of production does not include ……
#53. An iso quant shows
#54. Economies of scale exist because as a firm increases its size in the long run:
#55. The production function:
#56. The production process described below exhibits. q no: 56 pgno 3.51
#57. Which of the following is a variable cost in the short run?
#58. The efficient scale of production is the quantity of output that minimizes
#59. In the short run, the firm’s product curves show that
#60. A fixed input is defined as
#61. Average product is defined as
#62. Which of the following statements is true?
#63. Marginal product, mathematically, is the slope of the
#64. 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:
#65. Which of the following statements is false in respect of fixed cost of a firm?
#66. Diminishing marginal returns for the first four units of a variable input is exhibited by the total product sequence:
#67. Use the following diagram to answer the question given below it qno;67 pgno 3.53 The marginal physical product of the third unit of labour is _____, the MP of the _____ labour is Negative
#68. In the third of the three stages of production
#69. When marginal costs are below average total costs,
#70. A firm’s long-run average total cost curve is
#71. In the long run, if a very small factory were to expand its scale of operations, it is likely that it would initially experience
#72. A firm’s long-run average total cost curve is
#73. Which of the following statements describes increasing returns to scale?
#74. The marginal cost for a firm of producing the 9th unit of output is ` 20. Average cost at the same level of output is ` 15. Which of the following must be true?
#75. Implicit cost can be defined as
#76. The most important function of an entrepreneur is to ____________.
#77. Economic costs of production differ from accounting costs of production because
#78. In figure below, possible reason why the average variable cost curve approaches the average total cost curve as output rises is: qno;78 pgno 3.55
#79. Marginal cost changes due to changes in —————
#80. Which of the following statements is correct?
#81. Which of the following statements is incorrect?
#82. The vertical difference between TVC and TC is equal to-