1st yr quiz

Which is called production

• Conversion of raw material into final goods

• Creation of new things

Production function is given by

• Alfred Marshall

• Stigler

Which is a fixed factor

• Land

• Capital

Which factor of production does not have mobility

• Labour

• Land

Law of variable proportions is related to which period

• Long run period

• Short run period

Which factor of production is variable factor

• Labour

• Organisation

In which law all factors of production become variable

• Law of variable proportion

• Law of returns to scale

How are price and supply related to each other

• Directly

• Indirectly

The amount paid to the outside factor of production is called

• Implicit costs

• Explicit costs

The efforts and sacrifices made by the labourers in production process are called

• Real costs

• Money costs