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Chapter 3 (Theory Of Production And Cost) Flashcards

1
Q

Command economy is found in _____ economic system.

  1. Capitalist
  2. Socialist
  3. Mixed
  4. None of the above
A
  1. Socialist
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2
Q

Land is _____ factor of production.

  1. Active
  2. Passive
  3. Both a & b
  4. None of the above
A
  1. Passive
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3
Q

Land supply is_____

  1. Perfectly Elastic
  2. Perfectly Inelastic
  3. Relatively elastic
  4. Relatively Inelastic
A
  1. Perfectly Inelastic
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4
Q

Labour means _____

  1. Physical exertion
  2. Mental exertion
  3. Exertion for consideration
  4. All of the above
A
  1. All of the above
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5
Q

Mixed economy_____

  1. Involvement of PSU
  2. Involvement of private company
  3. Both a & b
  4. None of the above
A
  1. Both a & b
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6
Q

Labour is _____

  1. Immobile
  2. Mobile
  3. None of the above
A
  1. Mobile
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7
Q

Labour is perishable in nature

  1. True
  2. False
A
  1. True
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8
Q

Factors of production_____

  1. Land
  2. Labour
  3. Capital
  4. Entrepreneur
  5. All of the above
A
  1. All of the above
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9
Q

Capital is a _____ concept

  1. Flow
  2. Stock
A

Stock

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10
Q

Goodwill is _____ kind of capital.

  1. Tangible capital
  2. Intangible capital
  3. Real capital
  4. Physical capital
A

Intangible capital

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11
Q

Working capital is also known as _____

  1. Fixed capital
  2. Circulating capital
  3. Tangible capital
  4. Intangible capital
A

Circulating capital

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12
Q

Capital is a _____ concept

  1. Stock concept
  2. Flow concept
  3. Bot A&B
  4. None of the above
A

Stock concept

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13
Q

“Function of entrepreneurs is to innovate” was said by

  1. Joseph schumpeter
  2. Frank knight
  3. Karl’s Marx
  4. Alfred Marshall
A

Joseph schumpeter

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14
Q

Law of variable proportion is used in _____

  1. Long run
  2. Medium run
  3. Short run
  4. All of the above
A

Short run

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15
Q

Capital is also known as

  1. Produced means of production
  2. Man made instruments of production
  3. Produced factors of production
  4. All of the above
A

All of the above

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16
Q

Circulating capital is also known as ______

  1. Real capital
  2. Single use capital
  3. Working capital
  4. Both B&C
A

Both B&C

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17
Q

“Profit is the reward for bearing uncertainties” was said by

  1. Joseph schumpeter
  2. Frederick Engels
  3. Frank night
  4. Karl Marx
A

Frank knight

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18
Q

Land is immobile in nature

True or False

A

True, because land can’t be shifted from one place to other

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19
Q

When AP=MP, MP is max

True of False

A

False, because when AP=MP;AP is max

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20
Q

AP is greater than MP in increasing returns

True or false

A

False, because in increasing returns MP>AP

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21
Q

In diminishing returns TP starts falling

True or false

A

True

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22
Q

When TP increases in an increasing rate

  1. Stage 1
  2. Stage 2
  3. Stage 3
A

Stage 1

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23
Q

When is point of inflexion

  1. When TP is max
  2. When AP is max
  3. When MP is max
  4. When TP is max and MP is zero
A

When MP is max, and it is just before the end of stage 1

24
Q

When MP is negative

  1. Stop production
  2. Produce more
  3. None
A

Stop production, because it leads to negative returns

25
Law of variable proportion is used 1. Short run 2. Long run
Short run
26
Iso quant curve gives us idea about combinations of 1. Inputs 2. Two products
Inputs, i.e.. Labour and capital
27
Iso quant is also called as 1. Equal cost curve 2. Equal product curve 3. Both A&B 4. None of the above
Equal product curve
28
When AP=MP 1. AP is max 2. MP is max 3. App is min 4. Both B&C
AP is max
29
Iso cost line is almost known as 1. Product indifference curve 2. Production indifference curve 3. Equal cost line 4. All of the above
Equal cost line
30
Increasing returns 1. TP decreases 2. TP increases 3. TP is negative 4. TP increases at increasing rate
TP increases at increasing rate
31
Cost that can not be recovered 1. Sunk cost 2. Incremental cost 3. Opportunity cost 4. Non-traceable cost
Sunk cost
32
Explicit cost is for self owned factors 1. True 2. False
False, because implicit cost is for self-owned factors
33
_______ cost does not change with production 1. Fixed cost 2. Variable cost 3. Opportunity cost 4. Incremental cost
Fixed cost, because it is fixed
34
LAC curve is also known as 1. Planning curve 2. Envelope curve 3. Both A&B 4. None of the above
Planning curve or envelope curve
35
SAC curve includes all variable factors 1. True 2. False
True
36
AVC & ATC are U-shaped curve 1. True 2. False
True
37
TVC is S-shaped curve 1. True 2. False
True
38
When AP and MP is equal 1. AP is lowest 2. AP is max 3. MP is max 4. AP & MP both max
AP is max
39
The vertical difference between TC & TVC is 1. TFC 2. AFC 3. AVC 4. ATC
TFC
40
Active factor of production 1. Land 2. labour 3. capital 4. all of the above
labour
41
when income increases but demand for a product decreases 1. luxury goods 2. necessity goods 3. medicines 4. inferior goods
inferior goods
42
goods which can be consumed only ones are called as 1. durable 2. non durable 3. produced 4. none
non durable
43
when Apple and pineapple or substitute then increase in price of Apple leads to 1. increase in price of pineapple 2. decrease in price of pineapple 3. increase in quantity of pineapple 4. decrease in quantity of pineapple
Increase in quantity of pineapple
44
Reliance industries incorporated in the year 1. 1960 2. 1966 3. 1975 4. 1981
1966
45
when supply is increasing due to other factors 1. increase in supply 2. extension in supply 3. expansion in supply 4. all of the above
increase in supply
46
Accounting cost is 1. not recorded in books of accounts 2. recorded in books of accounts 3. similar of implicit cost 4. B&C of above
recorded in books of accounts
47
Supply is 1. stock concept 2. flow concept
flow concept
48
Yield on capital is 1. stock concept 2. flow concept
flow concept
49
Yield on capital is 1. stock concept 2. flow concept
flow concept
50
capital is 1. stock concept 2. flow concept
stock concept
51
horizontal curve 1. e=1 2. e>1 3. e<1 4. e= ♾️
e = ♾️
52
Fortune 500 company rank 1 1. Reliance 2. Adani 3. walmart 4. apple
walmart
53
in very short period supply 1. can be changed 2. can't be changed
can't be changed
54
when I purchase Matchbox increase in price of Matchbox is going to have 1. more elastic 2. less elastic
less elastic
55
when there are many substitute elasticity is 1. e = 1 2. e > 1 3. e < 1 4. e=0
e > 1

Business Economics (4 decks)

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