Theory Of Production(Indian Economy ) Questions and Answers

Question 1. ________ is an expression of the technological relationship between inputs and outputs of an item.
  1.    Production
  2.    Revenue function
  3.    Production function
  4.    All of the above
Explanation:-
Answer: Option C. -> Production function


Question 2. _______ refers to the transformation of inputs into output.
  1.    Production
  2.    Revenue function
  3.    Production function
  4.    All of the above
Explanation:-
Answer: Option A. -> Production


Question 3. Production function specifies_______.
  1.    Maximum output produced with a given output
  2.    Minimum quantity of inputs needed to produce
  3.    Both (a)&(b)
  4.    None of the above
Explanation:-
Answer: Option C. -> Both (a)&(b)


Question 4. Production function is defined concerning;
  1.    Input
  2.    Technology
  3.    Output
  4.    Entrepreneurship
Explanation:-
Answer: Option B. -> Technology


Question 5. A period in which output can be changed by changing only variable factors
  1.    Long run
  2.    Short-run
  3.    Fixed run
  4.    Factor run
Explanation:-
Answer: Option B. -> Short-run


Question 6. Which of the following are fixed inputs?
  1.    Plant
  2.    Machinery
  3.    Building
  4.    All of the above
Explanation:-
Answer: Option D. -> All of the above


Question 7. ______ refers to a period in which output can be changed by changing all factors of production.
  1.    Long run
  2.    Short-run
  3.    Fixed run
  4.    Factor run
Explanation:-
Answer: Option A. -> Long run


Question 8. The long-run period is ______ concept.
  1.    Economical
  2.    Functional
  3.    Productional
  4.    None of the above
Explanation:-
Answer: Option B. -> Functional


Question 9. Factors in the short run are classified as;
  1.    Variable
  2.    Fixed
  3.    Both (a)&(b)
  4.    None of the above
Explanation:-
Answer: Option C. -> Both (a)&(b)


Question 10. In the short run ______ is more active in price determination.
  1.    Supply
  2.    Demand
  3.    Both (a)&(b)
  4.    None of the above
Explanation:-
Answer: Option B. -> Demand


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