WorksheetsTHEORY OF PRODUCTION
Total questions: 25
Worksheet time: 25mins
Unprocessed natural resources used in production.
Total Product
Increasing Returns
Short Run
Stages of Production
Raw Materials
A production function shows about the relationship between
Input and cost
Outputs and cost
Products and cost
Input and Output
The average amount of output produced by each labor employed is
Total Product
Marginal Product
Average product
Production function
Which of the following is NOT considered to be fixed input?
Factory buildings
Offices
Raw material
Efficient managers
Long run refers to the time period in which
all inputs cannot be increased
all inputs can be variable input
there is at least one variable input
there is at least one fixed input
The law of diminishing marginal returns states that
as more of a variable input is used, while other inputs and technology are fixed, the average product of the variable input will increase.
as more of a variable input is used, while other inputs and technology are fixed, the marginal product of the variable input will eventually decrease.
as more of a variable input is used, while other inputs and technology are fixed, the average product of the fixed input will eventually decrease.
as more of a fixed input is used, while other inputs and technology are variable, the marginal product of the variable input will eventually increase.
What resource is this?
capital resource
natural resource
human resource
Bill Gates is an example of...
Land (seriously though, come on)
Labor
An Entrepreneurs
Capital
How many phases of production are there?
1
2
3
4
When the total production is maximized, the marginal production is
positive
zero
negative
maximum
'When one unit of variable input is added to fixed input, it will decrease the production'.
This situation can be described as ...
law of marginal return.
law of negative marginal return.
law of increasing marginal return.
law of decreasing marginal return.
An increase in total production due to an increase of one unit of variable input is known as ...
marginal cost.
average cost.
marginal production.
average production.
Long run refers to time period in which ...
all inputs cannot be increased.
all inputs can be increased.
there is at least one variable input.
there is at least one fixed input.
When the marginal product is negative, the total product is ...
decreasing.
positive.
negative.
maximum.
2. Which of the following combinations is TRUE about factors of production ?
Labour - profit
Capital - interest
Entrepreneur - dividend
Land - output
2. Which of the following factors of production is likely to be variable in the short run ?
The size of the firm’s plant.
The location of the firm.
The number of workers.
The amount of machinery used.
When marginal product is deacreasing but positive, total product is ...
decreasing at decreasing rate.
increasing at an increasing rate.
decreasing at decreasing rate.
increasing at a decreasing rate.
