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Theory of production

Total questions: 8

Worksheet time: 4mins

Name
Class
Date
1.

a production function:

a)

Gives the minimum level of output that can be produced from a combination of inputs

b)

Gives the different levels of output that can be produced from a combination of inputs

c)

Gives the maximum level of output that can be produced from a combination of inputs

d)

All of the above

2.

Economic time periods are related to

a)

Calendar years

b)

Ease with which factors can change

c)

Both a and b

d)

None of the above

3.

A time period when at least one factor of production is held constant is called

a)

Market period

b)

Very short period

c)

Short run

d)

Long run

4.

Which of the following is an example of a variable factor?

a)

Permanent labour which remains employed at all levels of output

b)

Land on which the factory is located

c)

Machinery which does not change easily

d)

None of the above

5.

If the production function Q=2K.L 1/2, then output at 2 units of capital and 16 units of labor is:

a)

32 units

b)

16 units

c)

8 units

d)

4 units

6.

Output per unit of input employed is

a)

Total product

b)

Average Product

c)

Marginal product

d)

Any of the above

7.

The total output produced by 4 units of labor is 25 units and that of 5 units of labor is 40 units. The marginal product of the fifth unit of labor is

a)

15 units

b)

25 units

c)

40 units

d)

65 units

8.

The total product of 5 units of labor is 40 units and that of 6 units of labor is 42 units. the average product of 5 units of labor is

a)

40 units

b)

42 units

c)

8 units

d)

7 units