CA Foundation Theory of Production — practice questions
30 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Foundation Theory of Production in the app →In Economics, which of the following activities counts as production?Production in Economics is best described as the creation of:Transporting apples from Kashmir orchards to crowded city markets, where they satisfy more people, is an exampWhich factor of production is described as a free gift of nature whose total supply for the economy is perfectSeeds, fuel and raw materials, which perform their function in a single use and are not available for further According to Schumpeter, the true function of an entrepreneur is to:Which single function of an entrepreneur cannot be delegated to paid managers and is therefore regarded as theA period is defined as the short run in production analysis when:Using the product schedule, 3 units of labour yield a total product of 330 units. What is the average product In the product schedule, total product rises from 330 units (at 3 workers) to 440 units (at 4 workers). The maFrom the product schedule, total product is 600 units at 6 workers and 670 units at 7 workers. The average proIn the product schedule, total product is 750 units at both 9 and 10 workers, and falls to 740 units at 11 worIn the product schedule, total product equals 750 units at both 9 and 10 workers. What does this tell us aboutA worker schedule shows TP of 100 at 1 worker, 210 at 2 workers, and 330 at 3 workers. Over this range the marIn the product schedule, average product peaks at 110 units when total product is 440 at 4 workers. What is trWhen the average product of a variable factor is rising as more units are employed, the marginal product is:The Law of Variable Proportions describes the behaviour of output when:Which of the following is NOT an assumption underlying the Law of Variable Proportions?In which stage of the Law of Variable Proportions does total product reach its maximum and marginal product beA rational producer will choose to operate in which stage of the Law of Variable Proportions?The main reason a firm experiences increasing returns at the initial stage of the Law of Variable Proportions If a firm doubles all of its inputs and as a result its output exactly doubles, the firm is experiencing:Constant returns to scale is also known by which of the following names?In the Cobb-Douglas function Q = K L^a C^b, decreasing returns to scale result when:Decreasing returns to scale set in mainly because of:An isoquant is best defined as a curve representing:Using the isoquant schedule, factor combination B uses 2 units of X with 8 units of Y, and combination C uses Isoquants are convex to the origin because of:A firm has Rs. 1,000 to spend; factor X costs Rs. 10 and factor Y costs Rs. 20 per unit. If it spends the entiThe least-cost combination of factors for producing a given output occurs at the point where: