Production Functions/Law of Diminishing Returns

Production Functions/Law of Diminishing Returns

12th Grade

10 Qs

quiz-placeholder

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Production Functions/Law of Diminishing Returns

Production Functions/Law of Diminishing Returns

Assessment

Quiz

Social Studies

12th Grade

Medium

Created by

James Blocker

Used 14+ times

FREE Resource

10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Explain the factors that affect production functions.

Education, health, social status

Technology, labor, capital, entrepreneurship, and natural resources.

Food, clothing, shelter

Weather, time, location

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Imagine Henry is working on a farm and decides to increase the number of workers to boost the farm's output. What principle is being demonstrated if, after adding a certain number of workers, each additional worker contributes less to the total output than the previous one, assuming all other factors remain constant?

The law of diminishing returns is a principle in economics that states as one input variable is increased, there is a point at which the marginal increase in output decreases, assuming all other inputs are constant.

The law of constant returns

The law of accelerating returns

The law of increasing returns

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Imagine a farm where Noah decides to keep adding more workers to harvest wheat. How does the law of diminishing returns impact this scenario?

The law of diminishing returns impacts this scenario by causing a decrease in the marginal output of wheat per additional worker beyond a certain point.

The law of diminishing returns impacts this scenario by increasing the marginal output of wheat per additional worker beyond a certain point.

The law of diminishing returns impacts this scenario by having no effect on the relationship between the number of workers and the amount of wheat harvested.

The law of diminishing returns impacts this scenario by causing a linear increase in the amount of wheat harvested regardless of the number of workers.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Consider a bakery owned by Sophia where inputs like flour, sugar, and eggs are transformed into cakes and cookies. Discuss the relationship between these inputs and the bakery's outputs.

The bakery does not involve any inputs or outputs.

Inputs and outputs in the bakery have no correlation.

The relationship between inputs and outputs in the bakery is defined by how inputs like flour, sugar, and eggs are transformed into cakes and cookies based on the bakery's production function.

The relationship between inputs and outputs in the bakery is random and unpredictable.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What role does technology play in production functions?

Technology enhances productivity, streamlines processes, and facilitates innovation in production functions.

Technology hinders productivity in production functions.

Technology complicates processes in production functions.

Technology has no impact on production functions.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do fixed inputs influence production functions?

Fixed inputs influence production functions by setting limits on output levels and leading to diminishing returns as more variable inputs are added.

Fixed inputs can be easily substituted with variable inputs in production functions

Fixed inputs always lead to increasing returns in production functions

Fixed inputs have no impact on production functions

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Consider a coffee shop owned by Charlotte. Discuss the importance of marginal product in determining how many baristas to hire for optimizing coffee production and efficiency.

Marginal product is important in production functions to optimize input levels and output efficiency.

Marginal product has no impact on production functions

Marginal product is only relevant in theoretical models

Marginal product is used to decrease efficiency in production functions

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