Semi Final

Question 1

is the relationship between the number of inputs required and the amount of output obtained. It is a schedule showing the maximum amount of outputs produced from any specified sets of inputs given the existing technology.

Answer 1

Production function

Question 2

tells us the specific quantities of inputs needed to produce any given service or good.

Answer 2

Production technology

Question 3

It is a technology that relies heavily on human labor instead of capital

Answer 3

Labor-intensive technology

Question 4

It is a technology that relies heavily on capital instead of human labor.

Answer 4

Capital-intensive technology

Question 5

this would be a capital- intensive technology. It is a technology that relies heavily on capital instead of human labor.

Answer 5

Capital-intensive technology

Question 6

is one whose quantity cannot be readily changed when market conditions indicate that a change in output is desirable.

Answer 6

Fixed cost

Question 7

is one whose quantity can be readily changed when a change in output is desired.

Answer 7

Variable input

Question 8

which refers to the time frame in which the input of one or more productive agents is fixed.

Answer 8

Short-run

Question 9

refers to the period in which all inputs are variable. This is because when fixed inputs need adjustment, it can be done when given sufficient time.

Answer 9

Long-run

Question 10

It is also the decision period over which firms can choose to expand or contract all of their factors of production. Firms can plan for any output level they find desirable. They can double or triple output

Answer 10

Long-run

Question 11

which refers to the total output produced in physical units.

Answer 11

Total output

Question 12

which refers to the total output divided by the variable inputs’ quantity under consideration.

Answer 12

Average product

Question 13

refers to the additional output attributed to the increase in the variable inputs’ quantity under consideration

Answer 13

Marginal product

Question 14

refers to the total payment by a firm to the owner of the factors of production; they are the expenditure side of a firm in the process of creating goods and services.

Answer 14

Cost of production

Question 15

refers to the sum of all the expenditures in producing goods and services

Answer 15

Total cost

Question 16

is total cost divided by the number of units of output; a per-unit measure of total costs. It is as the sum of average fixed cost and average variable cosl

Answer 16

Average total cost

Question 17

is the portion of total cost which remains unchanged even if the level of output changes

Answer 17

Fixed cost

Question 18

Sometimes called overhead

Answer 18

Total fixed cost

Question 19

is the process of dividing total fixed costs by more units of output.

Answer 19

Spreading overhead

Question 20

is the part of the total cost that vary with the amount of output produced. (wages, raw material).

Answer 20

Variable cost

Question 21

is the sum of those costs that vary with the level of output in the short run

Answer 21

Total variable cost

Question 22

is the sum of the average fixed cost and average variable cost. This is also known as the total cost per unit. It is determined by dividing total cost by the volume of output.

Answer 22

Average cost

Question 23

is the cost of producing one more unit of output. it is derived by ascertaining the change in total cost and dividing it by the change in the quantity of output. This is the most important of all cost concepts. It reflects changes in variable costs.

Answer 23

Marginal cost

Question 24

is the amount received from the sale of the product.

Answer 24

Total revenue

Question 25

is a short-run decision to temporarily stop the production due to market or economic reasons.

Answer 25

Shut down

Question 26

is the additional income of a firm brought by producing and selling one additional unit of a product.

Answer 26

Marginal revenue