ECONOMICS CHAPTER 3

The primary factors of production are:

• Labour and Organisation

• Labour and Capital

• Land and Capital

• Land and Labour.

The man-made physical goods used to

produce other goods and services are referred to as.

• Land

• Labour

• Capital

• Organization

Formula for calculating AP is

• ΔTP/N

• ΔTP/ΔN

• TP/MP

• TP/N

The functional relationship between “inputs” and “outputs” is called as

• Consumption Function

• Production Function

• Savings Function

• Investment Function

Who said, that one of the key of an entrepreneur is “uncertaintybearing”.

• J.B.Clark

• Schumpeter

• Knight

• Adam Smith

The long-run production function is explained by

• Law of Demand

• Law of Supply

• Returns to Scale

• Law of Variable Proportion

Mention the economies reaped from inside the firm

• financial

• technical

• managerial

• all of the above

Modern economists have propounded the law of

• Increasing returns

• decreasing returns

• Constant returns

• variable proportions.

An Iso-quant curve is also known as

• Inelastic Supply Curve

• Inelastic Demand Curve

• Equi-marginal Utility

• Equal Product Curve

Which of the following is not a characteristic of land?

• Its limited supply.

• It is mobile

• Heterogeneous

• Gift of Nature