CBSE Questions for Class 11 Commerce Economics Production And Costs Quiz 1 - MCQExams.com

Production function shows the  ______________.
  • output possibilities
  • input possibilities
  • input-output possibilities
  • Price and quantities supplied
The producer's demand for a factor of production is governed by the ________ of that factor.
  • price
  • marginal productivity
  • availability
  • profitability
Production function relates ________.
  • cost and output
  • cost and input
  • wages and profit
  • input and output
Which of the following curves re not U-shaped?
  • AVC curve
  • AFC Curve
  • AC Curve
  • MC Curve
Which of the following are factors of production?
  • Land
  • Labour
  • Capital
  • All of them
Which activity is not included in production?
  • Production of wheat by a farmer
  • Production of medicines by a company
  • Services given by a nurse in hospital
  • Services done by a house-wife in her own house
The long run cost curves are __________________.
  • Flatter than the short-run cost curves
  • U-shaped curves
  • T-shaped curves
  • Saucer shaped curves
The law of returns refers to
  • The amount of extra output secured by adding to a fixed input, more and more variable inputs
  • The amount of extra output secured by adding to variable inputs and marginal inputs
  • The amount of extra profit secured by adding to a fixed input, more and more variable inputs
  • None of these
According to Marshall, the law of diminishing returns applies only to _______________.
  • agriculture
  • industry
  • shipping 
  • all of the above
When the marginal cost rises, the average cost also rises, but _____________.
  • the marginal cost falls more rapidly than the average cost
  • the marginal cost rises more rapidly than the average cost
  • the marginal cost rises more rapidly than the total cost
  • none of these
Cobb-Douglas Production function is expressed by
  • $$Q =x_1^{\alpha}x_2^{\beta}$$
  • V= f(a,b,lc,d....j
  • pnk=f(mximy)
  • $$Q=A a^{c-o}+(1-a)^{c-a}-0$$
Rationalisation means _____________.
  • reorganisation and reorientation of production and distribution methods
  • under-utilization of existing plant capacity
  • employing more labour in the short run
  • higher costs
'Break-even point' appears under which circumstances?
  • Firm earns profit
  • Firm is incurring losses
  • Firm earns no profit and incurs no loss
  • All of these
When the marginal cost falls, the average cost also falls, but ____________.
  • the marginal cost falls more rapidly than the average cost
  • the marginal cost rises more rapidly than the average cost
  • the average cost rises more rapidly than the marginal cost
  • the average cost falls more rapidly than the marginal cost
The original form of Cobb-Douglas Production is applied to __________________.
  • a firm
  • an industry
  • the whole manufacturing in the USA
  • all of these
The Iso-cost map shows _______.
  • the price of the two factors
  • the total output of the firm
  • Both (a) and (b)
  • None of these
A production function with two variable inputs can be represented by ________________.
  • Iso-Product curves
  • Iso-quants
  • Equal product curves
  • All of these
Which concept plays an important role in the modern theory of production?
  • MRS
  • MRTS
  • ISLM
  • Transformation curve
MRTS represents _______________.
  • the rate at which a factor of production can be substituted for another
  • the rate at which an individual will exchange successive units of one commodity for another
  • the slope of indifference curve
  • the slope of production possibility curve
Which of the following is correct regarding the equal product curves?
  • They slope upwards to the right.
  • They are concave to origin.
  • They never cut each other.
  • All of the above.
Equal product curve is also known as ________________.
  • production indifference curves
  • production possibility curves
  • product curve
  • MRTS
The equal product curves are superior to the _______________.
  • Indifference curves
  • Demand curves
  • Supply curve
  • ISLM curve
A Production function showing constant returns to scale is often called __________________.
  • Linear and homogeneous
  • Homogeneous of the first degree
  • Homogeneous of the second degree
  • Linear and homogeneous or homogeneous of the first degree
The slope of MRTS _________________.
  • $$\frac{deltaL}{deltaC}$$
  • $$\frac{deltaC}{deltaL}$$
  • $$\frac{deltab}{deltaa}$$
  • $$\frac{C}{L}$$
a) Iso-product curves are called product indifference curves
b) Iso-products curves are also known as , Iso-quants or equal product curves
  • Both (a) and (b) are true
  • (a) is true, but (b) is false
  • (a) is false, but (b) is true
  • Both (a) and (b) are false
Input-Output analysis is related with the name of ____________.
  • J.R. Hicks
  • A.R Lerner
  • Leontief
  • G.J. Stigler
a) Properties of iso-products curves are the same as those of indifference curves.
b) Iso-product curves slope upwards from left to right.
  • Both (a) and (b) are true
  • (a) is true, but (b) is false
  • (a) is false, but (b) is true
  • Both (a) and (b) are false
The iso quant technique is applicable to ____________.
  • Agriculture
  • Manufacture
  • Both (A) and (B)
  • None of these
The firm can achieve an optimum output combination of two goods with the help of _______________.
  • The production possibility curve
  • demand curve
  • cost curve
  • The price factor curves
Input-Output analysis is refered to as _________.
  • inter-industry analysis
  • linear programming
  • production function
  • theory of production
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