Chapter 3: Production Analysis — Online MCQ Test
ECONOMICS · CLASS 11th · Tamil Nadu State Board
Practice Chapter 3: Production Analysis with a free chapter-wise online MCQ test.
This chapter covers: This chapter explores production factors production functions law of variable proportions and laws of returns to scale. Students analyze isoquants producer equilibrium and economie....
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Chapter 3: Production Analysis — Important Questions & Answers
Which of the following is considered a primary factor of production?
- A. Land
- B. Capital
- C. Organization
- D. Technology
Answer: A. Land
Land is classified as a primary factor of production provided by nature.
Land is classified as a primary factor of production provided by nature.
The relationship between physical inputs and physical output is known as:
- A. Cost function
- B. Production function
- C. Consumption function
- D. Revenue function
Answer: B. Production function
Production function defines the technological relationship between inputs used and the resulting output.
Production function defines the technological relationship between inputs used and the resulting output.
The Law of Variable Proportions operates in the:
- A. Long run only
- B. Short run only
- C. Both short and long run
- D. None of the above
Answer: B. Short run only
The law of variable proportions is specifically applicable to the short run where some inputs are fixed.
The law of variable proportions is specifically applicable to the short run where some inputs are fixed.
If doubling all inputs leads to more than double the output, it is a case of:
- A. Constant returns to scale
- B. Diminishing returns to scale
- C. Increasing returns to scale
- D. Negative returns to scale
Answer: C. Increasing returns to scale
Increasing returns to scale occur when output increases more than proportionately to the increase in inputs.
Increasing returns to scale occur when output increases more than proportionately to the increase in inputs.
A producer reaches equilibrium when the Isocost line is:
- A. Intersecting the isoquant
- B. Tangent to the highest possible isoquant
- C. Below the isoquant
- D. Parallel to the isoquant
Answer: B. Tangent to the highest possible isoquant
Producer equilibrium is achieved where the isocost line is tangent to the highest attainable isoquant curve.
Producer equilibrium is achieved where the isocost line is tangent to the highest attainable isoquant curve.