MCQ on Production & Resource Economics Part-3
1. ———–is an applied field of science, Wherein the principle of choice are applied to use of capital,labour,land and management in farming industry.
A. Agricultural production economics
B. Resource economics
C. farm Management
D. Production economics.
2. What to Produce? Is——–problem
A. Factor-factor
B. Product – product
C. Factor- Product
D. None
3. How to produce? Is———Problem
A. Factor-factor
B. Product – product
C. Factor- Product
D. None
4. How much to produce? Is———-Problem
A. Factor-factor
B. Product – product
C. Factor- Product
D. None
5. Which of the following is a factors of production in addition to land,labour and capital:
A. Management
B. Rainfall
C. skill
D. All of these.
6. Other things equal, if a good has more substitutes, its price elasticity of demand is:
A. Larger
B. Smaller
C. Zero
D. Unity
7. Selection and adoption of best packages of practices comes under:
A. Agricultural marketing
B. Systems of farming
C. Types of farming
D. Farm management
8. When marginal product is zero, the total product is?
A. Maximum
B. Minimum
C. Zero
D. None of the above
9. Specialized farming and diversified farming are:
A. Types of farming
B. Systems of farming
C. Both (a) and (b)
D. None of these
Read also… TYPES OF FARMING- SYSTEM OF FARMING
10. When land is owned by government and workers work as employees getting their wages regularity, it is called?
A. Peasant farming
B. Collective farming
C. Capitalistic farming
D. State farming
11. What is the shape of the Average fixed cost curve?
A. U-shape
B. Horizontal upto a point and then rising
C. Sloping downwards to the right
D. Rectangular hyperbola
12. When increase or decrease in the level of one product does not affect the production level of another product, this relationship is known as?
A. Competitive
B. Complementary
C. Supplementary
D. Joint product
13. The amount added to total cost for producing additional unit of output is known as:
A. Marginal cost
B. Average cost
C. Total cost
D. None of them
14. The assets that are difficult to convert into cash to meet any current obligations are:
A. Working assets
B. Current assets
C. Fixed assets
D. None of the above
15. Total output is maximum to the point when:
A. Average product is maximum
B. Average product is zero
C. Marginal product is zero
D. Marginal product is maximum
16. Total cost is equal to:
A. Fixed cost + Variable cost
B. Fixed cost + Variable cost/100
C. Fixed cost – Variable cost
D. None of the above
17. The cost incurred by a firm in purchasing any factor of production is referred to as:
A. Explicit cost
B. Implicit cost
C. Variable cost
D. None of these
18. The cost of various operations from land preparation to threshing of the crop is known as:
A. Cost of cultivation
B. Cost of farming
C. Both (a) and (b)
D. None of the above
19. The cost which are not paid to others, are called:
A. Explicit cost
B. Implicit cost
C. Both (a) and (b)
D. None of these
20. The cost which is varying with the output is called:
A. Average variable cost
B. Average fixed cost
C. Variable cost
D. Fixed cost
21. The decisions about land resources and farming operations, questions like what to produce, how to produce and how to equip the farm, are known as:
A. Administration problem decisions
B. Production and organization problem decision
C. Buying decision
D. Selling decision
22. The formula for rate of capital turn over is:
A. Total Farm Assets / Net Farm Income x 100
B. Net Income / Total Farm Assests x 100
C. Gross Income/Total Farm Assests x 100
D. None of the above
23. The function of successful farm manager is:
A. Formation of the goals
D. None of the above
B. Recognition and definition of a problem
D. All of the above
24. The total fixed cost curve:
A. Increase with the level of output
B. Decreases as output increases
C. Remains constant at all the output
D. Both (b) and (c)
25. The inflection point on total product curve corresponds to the:
A. Maximum of marginal product curve
B. Maximum of average product curve
C. Maximum of total product curve
D. Minimum of marginal product curve
26. The large number of combination of two inputs which have some cost is known as:
A. Iso product
B. Iso cost
C. Iso revenue
D. Indifference curve
27. The law of diminishing returns applies more generally to:
A. Cloth Industry
B. Chemical Industry
C. Agricultural Industry
D. All of these
28. The law, which is very useful in determining the best use of limited resources, is:
A. Law of opportunity cost
B. Law of diminishing return
C. Law of substitution
D. None of the above
29. The most liquid assets are:
A. Fixed assets
B. Working assets
C. Currents assets
D. Liabilities
30. The physical property of a business along with their values at a specific date is enlisted in:
A. Farm book-keeping
B. Farm planning
C. Farm inventory
D. Farm management
31. The principle of equi-marginal return states that the profits will be the greatest if unit resources are used where:
A. Marginal returns are the highest
B. Average returns are the highest
C. Total returns are the highest
D. Net returns are the highest
32. The process of transformation of certain resources of inputs is known as:
A. Product
B. Production function
C. Production
D. Consumption
33. Each successive unit add more to the output than the previous unit,it found in law of:
A. Constant return
B. Increasing return
C. Decreasing return
D. Return to scale
34. In law of increasing return resulting production curve is to origin.
A. Convex
B. Concave
C. Straight line
D. Parallel
35. Each successive unit adds less to the output than the previous unit, it found in law of-
A. Constant return
B. Increasing return
C. Decreasing return
D. Return to scale
36. The shape of production curve is——to origin.
A. Convex
B. Concave
C. Straight line
D. Parallel
37. Linear production indicates:
A. Return to scale
B. Increasing return
C. Decreasing return
D. Constant return
38. In law of decreasing return resulting production curve is———-to origin.
A. Convex
B. Concave
C. Straight line
D. Parallel
39. Which relationship deals with production efficiency of the resources?
A. Factor-factor
B. Product – product
C. Factor- Product
D. None
40. In stage1 of production function elasticity of production (Ep) is:
A. Less than one
B. Greater than one
C. Is equal to one
D. Zero
41. At the end of stage1 of production function elasticity of production (Ep) is:
A. Less than one
B. Greater than one
C. Is equal to one
D. Zero
42. In stage 2 of production function elasticity of production (Ep) is:
A. Less than one
B. Greater than one
C. Is equal to one
D. Zero
43. At the end of stage 2 of production function elasticity of production (Ep) is:
A. Less than one
B. Greater than one
C. Is equal to one
D. Is equal to Zero
44. In which zone Marginal Physical Product is more than average physical product?
A. stage 1
B. stage 2
C. stage 3
D. None
45. ———is the document that is used to keep account different activities, events and materials etc regarding the farm operation.
A. Farm record
B. Farm budget
C. Farm planning
D. None
46. ——–are statements of money paid out or received for goods and services used in farming business.
A. Farm record
B. Farm budget
C. Farm planning
D. Farm account
47. In production function, production is a function of:
A. Price
B. Factors of Production
C. Total Expenditure
D. None of these
48. The basic reason of operating the Law of Diminishing Returns is:
A. Scarcity of Factors
B. Imperfect Substitution between Factors
C. Both (a) and (b)
D. None of the above
49. Which of the following explains the short-run production function ?
A. Law of Demand
B. Law of Variable Proportion
A. Returns to Scale
D. Elasticity of Demand
50. Long-run production function is related to:
A. Law of Demand
B. Law of Increasing Returns
C. Laws of Returns to Scale
D. Elasticity of Demand
51. In which stage of production a rational producer likes to operate in shot-run production ?
A. First Stage
B. Second Stage
C. Third Stage
D. None of these
52. Law of variable proportion explains three stages of production. In the first stage of production:
A. Both MP and AP rise
B. MP rises
C. AP Falls
D. MP is zero
53. At which time all the factors of production may be changed ?
A. Short run
B. Long run
C. Very Long run
D. All the three
54. The cycle which increases first and after being constant starts to reduce is called :
A. APP
B. MPP
C. TPP
D. All of these
55. Law of variable proportion is related to :
A. Both short-run and long run
B. Long-run
C. Short-run
D. Very Long-run
56. An active factor of production is:
A. Capital
B. Labour
C. Land
D. None of these
57. Which of the following is not fixed cost ?
A. Insurance Premium
B. Interest
C. Cost of Raw Material
D. Rent of the Factory
58. With the increase in production the difference between total cost and total fixed cost:
A. Remains Constant
B. Increases
C. Decreases
D. Both Increases or Decreases
59. What happens when production is shut down ?
A. Fixed Cost Increases
B. Variable Costs Decline
C. Variable Costs become zero
D. Fixed Costs become zero
60. Which statement of the following is true ?
A. AC=TFC – TVC
B. AC = AFC + TVC
C. AC=TFC + AVC
D. AC = AFC + AVC
61. What is an opportunity cost ?
A. The alternative foregon
B. The opportunity lost
C. Transfer earnings
D. All of these
62. In which market MR may become zero or negative ?
A. Monopoly
B. Monopolistic Competition
C. Both (a) and (b)
D. Perfect Competition
63. In which market AR = MR ?
A. Monopoly
B. Monopolistic Competition
C. Both (a) and (b)
D. Perfect Competition
See also…
MCQ on Farm management & Production Economics
MCQ on Farm management Economics Part 1
FARM MANAGEMENT- DEFINITION & OBJECTIVES