A level Production Theory Quiz 1

15 Questions

Quiz Description

Here in this economics quiz, we shall study production according to the Advanced level standards of education. Under this topic, we will broaden our knowledge on the law of diminishing returns, the factors of production, the cost of production, the law of variable proportion, investments, etc. You should try this quiz.

Production refers to the process of combining both material inputs, and immaterial inputs (know-how) in order to make something (good or service) for consumption. There exist 4 factors of production which are: land, labor, capital, and entrepreneur. Land as a factor of production can take several forms such as agricultural land, commercial real estate, or natural resources like gold and oil can be extracted from land. Labor refers to the physical efforts or work done by individuals to bring a product or service to the market. Capital on the other hand is money. But money isn’t a factor of production because it is not directly involved in the production process. Finally, entrepreneurship is what combines all the other factors of production into a product or service for the consumer market.

Having gone through a brief introduction of what this quiz is all about, I think it’s time to get to work. Answer the quiz correctly and make yourself proud. Good luck. 

1:

 ______ shows the overall output generated at a given level of input: 


Correct
  • 1:
    Cost function
  • 2:
    Production function
  • 3:
    Iso cost
  • 4:
    Marginal rate of technical substitution
2:

 If LAC curve falls as output expands, this is due to _____: 


Correct
  • 1:
    Law of diminishing retains
  • 2:
    Economics of scale
  • 3:
    Law of variable proportion
  • 4:
    Diseconomics of scale
3:

 Isoquants are equal to: 


Correct
  • 1:
    Product Lines
  • 2:
    Total utility lines
  • 3:
    Cost lines
  • 4:
    Revenue lines
4:

 The marginal product curve is above the average product curve when the average product is : 


Correct
  • 1:
    Increasing
  • 2:
    Decreasing
  • 3:
    Constant
  • 4:
    None
5:

 Increasing returns to scale can be explained in terms of: 


Correct
  • 1:
    External and internal economies
  • 2:
    External and internal diseconomies
  • 3:
    External economics and internal diseconomies
  • 4:
    All of these
6:

 An isoquant is ______ to an iso cost line at equilibrium point: 


Correct
  • 1:
    Convex
  • 2:
    Concave
  • 3:
    Tangent
  • 4:
    Perpendicular
7:

 At the point of inflexion, the marginal product is: 


Correct
  • 1:
    Increasing
  • 2:
    Decreasing
  • 3:
    Maximum
  • 4:
    Negative
8:

 Diminishing marginal returns implies: 


Correct
  • 1:
    Decreasing average variable costs
  • 2:
    Decreasing marginal costs
  • 3:
    Increasing marginal costs
  • 4:
    Decreasing average fixed costs
9:

 If the marginal product of labour is below the average product of labour. It must be true that 


Correct
  • 1:
    Marginal product of labour is negative
  • 2:
    Marginal product of labour is zero
  • 3:
    Average product of labour is falling
  • 4:
    Average product of labour is negative
10:

 Law of variable proportion is valid when: 


Correct
  • 1:
    Only one input is fixed and all other inputs are kept variable
  • 2:
    All factors are kept constant
  • 3:
    All inputs are varied in the same proportion
  • 4:
    None of these
11:

 An organizer will always make ……………… 


Correct
  • 1:
    Innovations
  • 2:
    Traditions
  • 3:
    Risks
  • 4:
    none
12:

 There are …………….. factors of production 


Correct
  • 1:
    Two
  • 2:
    Four
  • 3:
    Five
  • 4:
    none
13:

 Labour cannot be separated from ……………… 


Correct
  • 1:
    Labourer
  • 2:
    Profit
  • 3:
    Capital
  • 4:
    none
14:

 

Investment in education is called ……………….. capital 


Correct
  • 1:
    Physical
  • 2:
    Human
  • 3:
    Money
  • 4:
    none
15:

 Capital is productive because it yields an ……………… 


Correct
  • 1:
    Interest
  • 2:
    Income
  • 3:
    Investment
  • 4:
    none

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A level Production Theory Quiz 1
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