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Production Function Quiz

The document is a quiz on short run and long run production functions. It contains 15 multiple choice questions testing understanding of key concepts such as: 1) The definition of a production function and the difference between short-run and long-run production functions. 2) Diminishing returns and marginal product. 3) The stages of production and how average and marginal product change over these stages. 4) Characteristics of isoquant curves and how short and long-run production functions differ in their ability to adjust inputs.

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Sjamnien Dionne Paler
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128 views3 pages

Production Function Quiz

The document is a quiz on short run and long run production functions. It contains 15 multiple choice questions testing understanding of key concepts such as: 1) The definition of a production function and the difference between short-run and long-run production functions. 2) Diminishing returns and marginal product. 3) The stages of production and how average and marginal product change over these stages. 4) Characteristics of isoquant curves and how short and long-run production functions differ in their ability to adjust inputs.

Uploaded by

Sjamnien Dionne Paler
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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GROUP 2 QUIZ

TOPIC: SHORT RUN AND LONG RUN PRODUCTION FUCTION

1. In economics, it’s a mathematical expression that relates the maximum amount of output that
can be obtained from a given number of inputs.

A. PRODUCTION FUNCTION
B. SHORT-RUN PRODUCTION FUNCTION

2. The change in total product when an additional unit of the variable factor of production is
employed.

A. AVERAGE PRODUCT
B. MARGINAL PRODUCT

3. The short run production function is one in which at least is one factor of production is thought
to be fixed in supply.

A. LONG-RUN PRODUCTION FUNCTION


B. SHORT-RUN PRODUCTION FUNCTION

4. The change in total output will first rise and then fall.

A. LAW OF DIMINISHING RETURN


B. PRODUCTION FUNCTION

5. It can operate at various activity levels because the firm can change and adjust all the factors of
production and level of output produced according to the business environment.

A. SHORT-RUN PRODUCTION
B. LONG-RUN PRODUCTION

6. Derived from the Greek word iso meaning “equal” and Latin word quantus meaning “quantity’.

A. ISOQUANT CURVE
B. DIMINISHING RETURN

7. A schedule showing various combinations of two inputs (say labour and capital) at which a
producer gets equal output is known as isoquant schedule.

A. ISOQUANT SCHEDULE
B. ISOQUANT CURVE
8. Short-Run Production Function alludes to the time period, in which at least one factor of
production is fixed.

A. FALSE
B. TRUE

9. This law states that as more workers are added to the production process, output increases, but
the size of the increase decreases with each additional worker.

A. PRODUCTION FUNCTION
B. LAW OF DIMINISHING MARGINAL RETURNS

10. The total product curve always has a positive slope, with marginal product always being initially
greater than average product.

A. STAGE 1
B. STAGE 2

11. Increasing the number of variable inputs becomes counterproductive; an additional source of
labor reduces overall output.

A. STAGE 2
B. STAGE 3

12. Each additional variable input will still produce additional units but at a decreasing rate.

A. STAGE 3
B. STAGE 2

13. Long-Run Production Function has a change in scale of production.

A. TRUE
B. FALSE

14. In Short-Run Production Function there are barriers to entry and the firms can shut down but
cannot fully exit.

A. FALSE
B. TRUE

15. Which is the characteristics of the Isoquant Curve?

A. Two isoquant curves do not intersect each other


B. Lower the Isoquant the lower the output
ANSWER KEYS:

1. A.
2. B
3. B
4. A
5. B
6. A
7. A
8. B
9. B
10. A
11. B
12. B
13. A
14. B
15. A

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