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WorksheetsCHAPTER 5 - PRODUCTION THEORY
Total questions: 10
Worksheet time: 4mins
Based on the theory of production, economic efficiency refers to _____________________.
the combination of inputs that will maximize outputs
the combination of inputs that involves decreasing costs
the combination of inputs that involves minimal costs
the combination of inputs that involves a constant cost
Which of the following statement BEST describes the short run economy?
It is a period of one year or less
It is a period of time where firms are free to change all their inputs
It is a period of time where at least one of the firm's inputs is fixed
It is a period of time where fixed inputs become variable inputs because of depreciation
Which of the following combination is TRUE about factors of production?
Capital - Interest
Labor - Profit
Land - Output
Entrepreneur - Dividend
The following table shows production of output at several levels of labor
At 2nd labor level, the average production is ____________ units
72
73
74
75
When the marginal product is negative, the total product is ________________
decreasing
positive
negative
maximum
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
The following table shows output quantities at the several of labor.
At the level of 3rd labors, average production is _________ units
10.4
23.5
25.3
28.3
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 inputs
"When one input 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
The average product exceeds the marginal product in the production function refers to level starting from __________
zero up to maximum marginal product
marginal product until to maximum
maximum average product and continues
maximum total product and continues
