Free Producer Behaviour 03 Practice Test - 11th Grade - Commerce
Question 1
Fixed factor are those factors, which can be increased or decreased in a short period of time to adjust supply.
True
False
SOLUTION
Solution : B
Fixed factors or production are fixed in the short run. In the long run, all factors are variable.
Question 2
In short period there is no change in
Fixed
Variable
Human
Physical
SOLUTION
Solution : A
The short run is defined in terms of fixed factors i.e. factors which can't be changed immediately.
Question 3
In the
Short run
Long run
Intermediate period
Market period
SOLUTION
Solution : B
In the long run, all factors are variable.
Question 4
Short run
Long run
Either A or B
None of the above
SOLUTION
Solution : A
In the short run, there are both fixed and variable factors.
Question 5
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.
True
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.
Question 6
At the point of inflexion:
Average product is maximum
Marginal product is maximum
Total product is maximum
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.
Question 7
The point of inflection on the total product curve corresponds to the level of output where
Stage II of production begins
average product is at a maximum
marginal product is at a maximum
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.
Question 8
MP curve is an inverted U-shaped curve.
True
False
SOLUTION
Solution : A
True. MP curve is an inverted U-shaped curve.
Question 9
Factors of production are imperfect substitutes of each other.
True
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.
Question 10
Productivity basically measures the ratio of total output to a weighted average of inputs.
True
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).