# Free Producer Behaviour 03 Practice Test - 11th Grade - Commerce

Fixed factor are those factors, which can be increased or decreased in a short period of time to adjust supply.

A.

True

B.

False

#### SOLUTION

Solution : B

Fixed factors or production are fixed in the short run. In the long run, all factors are variable.

In short period there is no change in ___factors.

A.

Fixed

B.

Variable

C.

Human

D.

Physical

#### SOLUTION

Solution : A

The short run is defined in terms of fixed factors i.e. factors which can't be changed immediately.

In the ___,changes in all the  factors of production is possible.

A.

Short run

B.

Long run

C.

Intermediate period

D.

Market period

#### SOLUTION

Solution : B

In the long run, all factors are variable.

___ is that period of time in which some factors are fixed and some are variable.

A.

Short run

B.

Long run

C.

Either A or B

D.

None of the above

#### SOLUTION

Solution : A

In the short run, there are both fixed and variable factors.

Returns to a factor refers to the resultant increase in the total product when only one factor is increased, keeping all the other factors constant.

A.

True

B.

False

#### SOLUTION

Solution : A

The statement is true. It measures the returns in terms of increased output when one additional unit of a factor is used, keeping all other factors constant.

At the point of inflexion:

A.

Average product is maximum

B.

Marginal product is maximum

C.

Total product is maximum

D.

None of the above

#### SOLUTION

Solution : B

Point of inflexion is the point where the slope of the TP curve reaches the maximum and starts decreasing. At this point, MP is maximum.

The point of inflection on the total product curve corresponds to the level of output where

A.

Stage II of production begins

B.

average product is at a maximum

C.

marginal product is at a maximum

D.

All of the above are correct

#### SOLUTION

Solution : C

The point of inflection on the total product curve corresponds to the level of output where marginal product is at a maximum.

MP curve is an inverted U-shaped curve.

A.

True

B.

False

#### SOLUTION

Solution : A

True. MP curve is an inverted U-shaped curve.

Factors of production are imperfect substitutes of each other.

A.

True

B.

False

#### SOLUTION

Solution : A

True. Factors of production are imperfect substitutes of each other. More and more of labour cannot be continuously used in place of capital. Accordingly, diminishing returns are bound to set in if only the variable factor is increased to increase output.

Productivity basically measures the ratio of total output to a weighted average of inputs.

A.

True

B.

False

#### SOLUTION

Solution : A

True. Productivity measures the ratio of total output to a weighted average of inputs. Economists typically look at two measures of productivity: labor productivity, which calculates the amount of output per unit of labor, and total factor productivity, which measures output per unit of total inputs (typically of capital and labor).