Production of Goods and Services
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Questions and Answers

Where does the production of services take place?

  • In shops, offices, and hospitals (correct)
  • In firms and industries
  • In agricultural fields and factories
  • In schools, colleges, and hotels

    • What are the four factors of production?

  • Land, labor, machinery, and entrepreneurship
  • Land, technology, capital, and entrepreneurship
  • Land, labor, capital, and entrepreneurship (correct)
  • Land, labor, money, and entrepreneurship

    • What does the relationship between inputs and output hold the key to?

  • Reducing the level of output
  • Maximizing the cost of production
  • Decreasing the level of input
  • Optimum use of resources (correct)

    • What is the result of the combined efforts of the factors of production?

    <p>Production</p> Signup and view all the answers

    What is the term used to describe the process of producing goods and services?

    <p>Production function</p> Signup and view all the answers

    What does the law of diminishing marginal product explain?

    <p>The decrease in additional output as one input is increased</p> Signup and view all the answers

    What is the definition of production function?

    <p>The relationship between inputs and outputs of a firm</p> Signup and view all the answers

    In the context of production, what are inputs?

    <p>The resources used in production</p> Signup and view all the answers

    What does a labor-intensive technology of production involve?

    <p>Making use of wooden plough and bullocks in production</p> Signup and view all the answers

    How is capital-intensive technology of production characterized?

    <p>Using advanced machinery and equipment</p> Signup and view all the answers

    What does the term 'output' refer to in the context of production?

    <p>The goods and services produced</p> Signup and view all the answers

    What is the primary goal of every producer in relation to production?

    <p>To maximize the quantity of output from given inputs</p> Signup and view all the answers

    How is technology or method of production defined?

    <p>'A technological relationship that tells us the maximum output producible from various combinations of inputs'</p> Signup and view all the answers

    What is the role of a production function in a firm?

    <p>To determine the maximum quantity of output that can be produced with given inputs</p> Signup and view all the answers

    What do labor and capital represent in the context of production?

    <p>Labor represents human effort, while capital represents physical assets used in production.</p> Signup and view all the answers

    What is the maximum quantity of output that can be produced with given quantities of inputs termed as?

    <p>Production function</p> Signup and view all the answers

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