Economics Production Function Quiz

What is the production function in economics?

• The relationship between input and output in the short run

• The government's role in controlling production

• The study of how goods and services are produced

• The demand and supply dynamics in the market

In the production function, what are inputs typically referred to as?

• Externalities

• Factors of production

• Outputs

• Marginal utility

Which of the following is a primary factor of production in the production function?

• Demand

• Labor

• Money

• Taxes

The law of diminishing returns states that:

• As production increases, so does the cost

• The more inputs added, the less additional output is gained

• Production will continue to increase indefinitely

• All inputs contribute equally to the production process

What is the mathematical representation of the production function?

• Q = K / L

• Q = K + L

• Q = K * L

• Q = K - L

If a production function exhibits constant returns to scale, what happens when all inputs are doubled?

• Output remains the same

• Output quadruples

• Output is halved

• Output is doubled

Which factor of production refers to the physical and human resources used in the production process?

• Land

• Capital

• Labor

• Entrepreneurship

In the long run, all inputs are considered to be:

• Fixed

• Elastic

• Constant

• Variable

What is the relationship between the marginal product and the average product in the short run?

• Marginal product is always greater than average product

• The relationship varies depending on the level of production

• Marginal product is always equal to average product

• Marginal product is always less than average product

Which of the following is not a stage in the law of variable proportions?

• Negative returns

• Increasing returns

• Diminishing returns

• Constant returns