Plus Two Economics Chapter 3 – Online Practice Exam in English

Chapter 3

# Question

1) A set of all the combinations of the two inputs that yield the same level of output is

# Hint

We get same level of output

Isoquant

PPC

Isocost line

Indifference Curve

# Question

2) Addition to the total product is called

# Hint

Additional output from an extra unit of variable input.

AP (Average Product)

Total Product (TP)

Marginal Product (MP)

None of these

# Question

3) AC (average cost) is the sum of AFC (average fixed cost) and

# Hint

How we get average cost.

TVC

AVC

TC

MC

# Question

4) The shape of AFC curve is

# Hint

Think about the shape of AFC curve

‘ U ‘ shape.

Inverted ‘ U ‘ shape

Rectangular Hyperbola

‘ L ‘ shape

# Question

5) All inputs can be varied in the

# Hint

Long run and Short run

Long run

Short run

Long run and Short run

None of the above

# Question

6) Which of the following cost will be zero when production is stopped ?

# Hint

Different type of costs

AFC

Fixed cost

Variable cost

Total cost

# Question

7) If input is doubled and output become double, the production function is

# Hint

Short run production

CRS (Constant Returns to Scale)

None of the above

# Question

8) The relationship between input and output is called

# Hint

Related with production

Utility function

Production function

Consumption function

Demand function

# Question

9) TP at 5th  unit of labour is 10 and TP at 6th unit of labour is 12, then MP is

Marginal Product

2

22

11

1

# Question

10) α + β = 1 in the Cobb-Douglas production function exhibits

# Hint

Types of production under Cobb-Douglas production function

IRS

DRS

CRS

None of the above

# Question

11) Identify the shape of the following AFC curve

# Hint

AFC curve from left to right

‘ L ‘ shape

‘ U ‘ Shape

Rectangular Hyperbola

None of the above

# Question

12) Slope of an isoquant is

# Hint

Feature of Isoquant

Marginal Cost

DMRS

MRS

DMRTS

13) ΔTC / ΔQ is

# Hint

Different cost concepts

AC

FC

MC

AVC

# Question

14) When MP becomes zero, TP

# Hint

Relation between TP and MP

Increases

Decreases

Become maximum

Becomes negative

# Question

15) All the following curves are ‘U’ shaped except

# Hint

Shapes of cost curves

The AFC curve

The AVC curve

The TFC curve

The TVC curve

16) TFC = AFC x

# Hint

Which of the following will you select to get TFC?

TVC

AVC

TFC

Q

# Question

17) When a firm increased the number of labour from 10 to 11, keeping the capital fixed the total product increased from 120 to 130. Which of the following is statement is correct in this regard ?

# Hint

Related with marginal product

The total product fell

This is a long run production

The average product is rising

10 is the marginal product of an increased unit of labour

# Question

18) ∞ + β > 1 in the Cobb-Douglas production function exhibits

# Hint

Cobb-Douglas production function

IRS

CRS

DRS

None of the above

# Question

19) Select the odd one

TVC

TFC

LAC

AFC

# Question

20)

Wages for own labour

Rent for own land

Interest for own capital

Energy cost

21)

LAC

DRS

IRS

CRS

22)

AFC

MRS

SMC

MPP

# Question 1

23) Average Product Curve is ‘ U ‘ shaped

# Question 2

24) The minimum point of AVC lies at the right of the minimum point of AC

# Question 3

25) As AC rises MC is greater than AC

# Question 4

26) MC is undefined at zero level of output

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