The Theory of Production Quiz
8 Questions
0 Views

The Theory of Production Quiz

Created by
@CapablePrudence

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What does production in economics refer to?

  • Transformation of inputs into outputs (correct)
  • Acquisition of raw materials
  • Marketing of goods and services
  • Distribution of final products

    • What does the Law of Variable Proportions/Law of Diminishing Returns state?

  • When one factor is increased, the marginal and average product increase indefinitely
  • When one factor is increased keeping others fixed, the marginal and average product eventually declines (correct)
  • When one factor is increased, all other factors increase proportionally
  • When one factor is increased, the total product remains constant

    • What happens to the marginal and average product as per the Law of Variable Proportions?

  • They decrease initially and then increase
  • They increase indefinitely when one factor is increased
  • They eventually decline when one factor is increased (correct)
  • They remain constant when one factor is increased

    • According to the Law of Variable Proportions, what happens when one factor is increased while keeping others fixed?

    <p>The marginal and average product eventually declines</p> Signup and view all the answers

    How is the Law of Variable Proportions also known?

    <p>Law of Diminishing Returns</p> Signup and view all the answers

    What does production in economics refer to?

    <p>Transformation of inputs into outputs</p> Signup and view all the answers

    What happens to the output when the quantities of a variable factor are increased to a fixed factor?

    <p>Increase in output to a point beyond which it eventually declines</p> Signup and view all the answers

    How many stages are there in the Law of Variable Proportions?

    <p>Three stages</p> Signup and view all the answers

    More Like This

    The Theory of Economic Growth and the Asian Experience Quiz
    5 questions

    The Theory of Economic Growth and the Asian Experience Quiz

    BeauteousPond avatar
    BeauteousPond
    The Theory of Production Quiz
    5 questions

    The Theory of Production Quiz

    AutonomousNarwhal3731 avatar
    AutonomousNarwhal3731
    The Theory of Production and Cost
    10 questions

    The Theory of Production and Cost

    InnocuousJadeite2735 avatar
    InnocuousJadeite2735
    The Theory of Production Quiz
    5 questions

    The Theory of Production Quiz

    HottestTanzanite avatar
    HottestTanzanite
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser