Production And Costs CBSE Questions & Answers

Production And Costs

This is Economics Class 12 Production and Costs CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
production function shows
  • A
    Technological relationship between inputs and output
    Correct
  • B
    Technological relationship between inputs and cost
  • C
    Economic relationship between inputs and output
  • D
    Technological relationship between inputs and price
2
In the short run TPP changes with the change in which of the following factors
  • A
    Economic cost
  • B
    All the factors
  • C
    Fixed factors
  • D
    Variable factors
    Correct
3
In the long run TPP changes with the change in which of the following factors
  • A
    Variable factors
  • B
    Fixed factors
  • C
    Economic cost
  • D
    All the factors
    Correct
4
In short run which of the following factors can be changed easily
  • A
    Variable factors
    Correct
  • B
    Fixed factors
  • C
    None
  • D
    All the factors
5
In short run TPP changes with the change in
  • A
    Average cost
  • B
    Total Product
  • C
    Marginal Product
    Correct
  • D
    Average product
6
How is TPP derived from MPP
  • A
    Cumulative subtraction
  • B
    Cumulative division
  • C
    Cumulative addition
    Correct
  • D
    Cumulative product
7
How is MPP derived from TPP
  • A
    Cumulative subtraction
    Correct
  • B
    Cumulative product
  • C
    Cumulative division
  • D
    Cumulative addition
8
How is APP derived from TPP
  • A
    Dividing TPP by units of variable factor
    Correct
  • B
    Addition of MPPs
  • C
    Dividing TPP by MPP
  • D
    Subtraction of MPPs
9
The general shape of TPP in the short run is
  • A
    Hyperbola
  • B
    V- shaped
  • C
    U shaped
  • D
    Inverse U shaped
    Correct
10
The general shape of APP in the short run is
  • A
    U shaped
  • B
    Inverse U shaped
    Correct
  • C
    Hyperbola
  • D
    V- shaped
11
Cost of production is
  • A
    Price of the output
  • B
    Price of per unit of output
  • C
    Price of per unit of input
  • D
    Expenditure on inputs to produce output
    Correct
12
Cost function shows
  • A
    Inverse relationship between inputs and cost
  • B
    Technological relationship between cost and price
  • C
    Technological relationship between cost and output
    Correct
  • D
    Economic relationship between inputs and cost
13
Money costs mean
  • A
    Money spent by the consumers
  • B
    Money expenditure on purchase of goods from the factory
  • C
    Money expenditure on output
  • D
    Money expenditure of a producer in the production process
    Correct
14
Explicit costs are paid to
  • A
    Internal owners of factors
  • B
    The tax authorities
  • C
    External owners of factors
    Correct
  • D
    The government
15
Implicit costs are
  • A
    Same as explicit costs
  • B
    Total cost
  • C
    Opportunity costs
  • D
    Imputed costs
    Correct