NEW
Font size
WorksheetsMix Economics chapter 3 (1)
Total questions: 65
Worksheet time: 33mins
In the production function we study
Input output relationship
Output costs relationship
Input costs relationship
None of above
In the cost function we study
Input output relationship
Output costs relationship
Input costs relationship
None of above
In the market theories we study
Cost and profit relationship
Output and cost relationship
Costs and input relationship
None of above
in production function we study how change in ________ affects ________
Output ; cost
Cost ; output
Output ; input
Input ; output
in cost function we study how change in ________ affects ________
Output ; cost
Cost ; output
Output ; input
Input ; output
In cost function the dependent variable is _______ and the independent variable is _________
Cost ; variable factor
Output ; cost
Cost ; output
Input ; output
Increasing marginal output implies
Decreasing marginal cost
Increasing marginal cost
Constant marginal cost
None
In the short run, Total fixed cost is the function of
Time
Output
Both a & b
None
In the short run, total variable cost is the function of
Time
Output
Both a & b
None
fixed factor as well as total cost associated with fixed factors __________ in the different stages of law of variable proportion.
Changes
Does not change
May change
None
Given total fixed cost of Rs.5,000 to be constant, as long as total output is rising, average fixed cost would
Fall initially
Fall continuously
Fall eventually
Fall in between
average fixed costs falls during
First & second stage of law of variable proportions
First, second and third stage of law of variable proportion
Second and third stage of law of variable proportion
None
In the first stage of law of variable proportion
Average variable cost is rising and average fixed cost is falling
Average variable cost is falling and average fixed cost is falling
Average variable cost is falling and average fixed cost is rising
None
In the second stage of law of variable proportion
Average variable cost is rising and average fixed cost is falling
Average variable cost is falling and average fixed cost is falling
Average variable cost is falling and average fixed cost is rising
None
In the first stage of law of variable proportion, average cost (i.e. AVC + AFC) will _________ due to ________ in average variable cost and ________ in average fixed cost
Fall ; fall ; fall
Fall ; rise ; fall
Fall ; fall ; rise
Rise ; rise ; fall
In the second stage of law of variable proportion average cost ______ since average fixed cost is falling and average variable cost is rising
will be falling
will be rising
Either a or b
None
When fall In average fixed is greater than rise in average variable cost then the average cost will
Fall
Rise
Remain unchanged
None
When fall In average fixed is less than rise in average variable cost then the average cost will
Fall
Rise
Remain unchanged
None
rising average product in the second stage of law of variable proportion
Falling average product in the second stage of law of variable proportion
negative average product in the third stage of law of variable proportion
None
7th unit
5th unit
4th unit
8th unit
In the first stage of law of variable proportion
Average product will fall and average variable cost would rise
Average product will fall and average variable cost would also fall
Average product would rise and average variable cost would fall
Average product would rise and average variable cost would also rise
In the second stage of law of variable proportion
Average product will fall and average variable cost would rise
Average product will fall and average variable cost would also fall
Average product would rise and average variable cost would fall
Average product would rise and average variable cost would also rise
MC
TC
TFC
AFC
TVC
AVC
MC
None
Which of the following is wealth in economics
Gold kept in a bank locker
Trucks used for production
Mobile phone used for entertainment
All of above
Which of the following is capital in economics
Gold kept in a bank locker
Trucks used for production
Mobile phone used for entertainment
All of above
Capital is that part of wealth which is used in
consumption of goods and services
Production of goods and services
Household needs
All of above
machines, factories, equipment’s used in factories, trucks, computers used in offices etc are all
Natural factors used in production
Produced means of production
free gift of nature
None
Produced means of production means all those factors which are
provided by nature free of cost
Created by human beings by working on natural factors
Created by human being without using any natural factors
None
A truck which is used in production is produced means of production this means
All the parts and components are fully man made and nothing or no ingredient is natural factor
All the parts and components are man made but all these parts are originally provide by nature and human being utilised them to make truck or modified them
Rahul has employed 3 machines and 12 labourers, but to have additional production he added 2 more machines and 8 more workers, this is case of
Change in scale
Change in factor proportion
None
Rahul has employed 3 machines and 12 labourers, but to have additional production he added 8 more workers, this is case of
Change in scale
Change in factor proportion
None
When factor proportion change the applicable law is
Law of returns to scale
Law of variable proportion
None
When scale changes the applicable law is
Law of returns to scale
Law of variable proportion
None
Law of increasing returns are found in ___________ whereas increasing returns to scale are found in ________
Short run ; long run
Long run ; short run
Short run ; short run
Long run ; long run
law of increasing returns is experienced in the ______ due to ________
short run ; division of labour
long run ; division of labour
short run ; economies of scale
long run ; economies of scale
law of diminishing returns is observed in the ______ due to ________
short run ; under utilization of fixed factor
long run ; over utilization of fixed factor
short run ; over utilization of fixed factor
long run ; under utilization of fixed factor
increasing returns to scale are observed in the ______ due to ________
short run ; division of labour
long run ; division of labour
short run ; economies of scale
long run ; economies of scale
decreasing returns to scale are observed in the ______ due to ________
short run ; economies of scale
long run ; dis-economies of scale
short run ; dis-economies of scale
long run ; economies of scale
constant returns to scale are observed in long run
due to economies of scale
due to dis-economies of scale
when economies of scale and dis-economies of scale balance out each other
none
when firm expands its scale in the long run it initially experiences __________ but when the firm keep on increasing its scale beyond the limit of its managerial capabilities it experiences __________
economies of scale ; economies of scale
economies of scale ; dis-economies of scale
dis-economies of scale ; economies of scale
none of above
in the long run for applicability of law of returns to scale, different factors of production are increased or decreased in
variable proportion
same proportion
either a or b
none
_____ costs are irreverent in economic decision making
variable costs
marginal costs
sunk costs
fixed costs
when all economies of scale set off by dis-economies of scale then the firm shall experience
net economies
net dis-economies
zero economies or dis-economies
none of above
when all economies of scale set off by dis-economies of scale then the firm shall experience
increasing returns to scale
decreasing returns to scale
constant returns to scale
none of above
when dis-economies are over-passing economies of scale, then the firm shall experience
increasing returns to scale
decreasing returns to scale
constant returns to scale
none
for iso-quant we consider _______ on x axis and _____ on Y axis
one factors of production ; another factor of production
factors of production (i.e. inputs) ; quantity of goods produced (i.e. output)
factors of production (i.e. inputs) ; total costs associated with output
none
Direct costs are those which can be _______ to the product, department, service etc
directly allocated
apportioned on some basis
either a or b
none
A company produces two products namely 'soap' and 'washing powder'. The costs incurred on raw material required for production of a soap will be allocated against
soap division
washing powder division
both a & b
none
A company produces two products namely 'soap' and 'washing powder'. The costs incurred on packing material required for packing of a washing powder will be allocated against
soap division
washing powder division
both a & b
none
A company produces two products namely 'soap' and 'washing powder'. The costs incurred on godown rent used to store raw material of the both the divisions will be apportioned to
soap division
washing powder division
both a & b
none
A company produces two products namely 'soap' and 'washing powder'. The costs incurred on packing material required for washing powder packing is _______ cost for washing powder division
direct cost
indirect cost
both a & b
none
A company produces two products namely 'soap' and 'washing powder'. The costs incurred on godown rent used to store raw material of the both the divisions will be apportioned to soap and washing powder division, hence it is _______ cost for both the divisions
direct cost
indirect cost
both a & b
none
In production function the two variables are ______ and in cost function the two variables are ________
variable factor and output ; fixed factor and output
variable factor and fixed factor ; output and costs
variable factor and output ; output and costs
none
Which of the following costs can be avoided
Sunk costs
Variable costs
Incremental costs
Fixed costs
Costs which represent the loss incurred due to choosing one course of action over another
Fixed costs
Opportunity costs
Outlay costs
Sunk costs
Rahul choose to produce product X in his farm in which he used to produce produce Y earlier. What is the opportunity cost of producing X
cost of raw material and labour
cost of fixed factors like tractor
income foregone due to not producing product Y
all of above
total variable cost
total fixed costs
both a & b
none
2,500
3,750
1,250
1,100
5,000
2,500
2,766
1,667
increasing returns to scale will give
decreasing per unit costs in the short run
increasing per unit costs in the short run
increasing per unit costs in the long run
decreasing per unit costs in the long run
Suppose a firm is incurring total cost of Rs.10,000 when it produces zero output in the short run, its total cost at this stage consists of
total fixed costs
total variable costs
both a & b
none
In cost function average cost is calculated as
cost per unit of output produced
cost per unit of labour employed
cost per unit of capital employed
none of above
total labour cost / labour quantity
total labour cost / total output produced
Rs.1,000 and Rs.1,000
Rs.100 and 160
Rs.100 and Rs.80
Rs.150 and Rs.250
