GYAN SAGAR CLASSES
CLASS TEST SERIES
CMA FOUNDATION BUSINESS ECONOMICS
TEST PAPER
Theory of production
MM : 50 Duration : 60 min
1. Marginal Revenue is calculated as: D. economies of scale.
A. ∆𝑇𝑅 7. When average product rises as a result of
∆Q an increase in the quantity of variable
B. ∆𝑇𝐶 factor, marginal product is:
∆Q A. Equal to average product
C. ∆𝑇𝑅 B. More than average product
∆AC C. Less than average product
D. ∆𝑇𝐶 D. Becomes negative
∆S 8. Which among the following is not a
2. A Production function refers to _________ characteristic of Land?
A. Scale of production A. It is an active factor
B. relationship between resources B. It has variety of uses
C. relationship between inputs and C. Its production powers are
output indestructible
D. relationship between costs and output D. Its supply is limited
3. Factors of production may be of _______ 9. Which of the following is not a characteristic
types of labour?
A. 4 A. It is perishable
B. 3 B. It has weak bargaining power
C. 2 C. Labour and Labour power cannot be
D. 5 separated
4. The Law of Variable Proportions relates to D. Labour is not mobile
_________ only. 10. Human capital refers to:
A. Long-run A. Savings by individuals
B. short –run B. Mobilisation of savings
C. very long-run C. Human skills and abilities
D. very short –run D. Productive investment
5. A rational producer produces in that region 11. Diminishing marginal returns implies
where: A. Decreasing average variable costs
A. marginal physical product of the fixed B. Decreasing marginal costs
input becomes negative C. Increasing marginal costs
B. marginal physical product of the D. Decreasing fixed costs.
variable input becomes negative 12. Production is defined as:
C. marginal physical product of the fixed A. Creation of matter
input becomes increasing B. Creation of utility in matter
D. marginal physical product of the C. Creation of infrastructural facilities
variable input becomes declining. D. None of the above.
6. If a firm doubles all inputs, and output 13. Linear homogeneous production function is
doubles as well, the firm is subject to: based on:
A. constant returns to scale A. Increasing returns to scale
B. increasing returns to scale B. Decreasing returns to scale
C. decreasing returns to scale
CLASS TEST SERIES
CMA FOUNDATION BUSINESS ECONOMICS
TEST PAPER
Theory of production
MM : 50 Duration : 60 min
1. Marginal Revenue is calculated as: D. economies of scale.
A. ∆𝑇𝑅 7. When average product rises as a result of
∆Q an increase in the quantity of variable
B. ∆𝑇𝐶 factor, marginal product is:
∆Q A. Equal to average product
C. ∆𝑇𝑅 B. More than average product
∆AC C. Less than average product
D. ∆𝑇𝐶 D. Becomes negative
∆S 8. Which among the following is not a
2. A Production function refers to _________ characteristic of Land?
A. Scale of production A. It is an active factor
B. relationship between resources B. It has variety of uses
C. relationship between inputs and C. Its production powers are
output indestructible
D. relationship between costs and output D. Its supply is limited
3. Factors of production may be of _______ 9. Which of the following is not a characteristic
types of labour?
A. 4 A. It is perishable
B. 3 B. It has weak bargaining power
C. 2 C. Labour and Labour power cannot be
D. 5 separated
4. The Law of Variable Proportions relates to D. Labour is not mobile
_________ only. 10. Human capital refers to:
A. Long-run A. Savings by individuals
B. short –run B. Mobilisation of savings
C. very long-run C. Human skills and abilities
D. very short –run D. Productive investment
5. A rational producer produces in that region 11. Diminishing marginal returns implies
where: A. Decreasing average variable costs
A. marginal physical product of the fixed B. Decreasing marginal costs
input becomes negative C. Increasing marginal costs
B. marginal physical product of the D. Decreasing fixed costs.
variable input becomes negative 12. Production is defined as:
C. marginal physical product of the fixed A. Creation of matter
input becomes increasing B. Creation of utility in matter
D. marginal physical product of the C. Creation of infrastructural facilities
variable input becomes declining. D. None of the above.
6. If a firm doubles all inputs, and output 13. Linear homogeneous production function is
doubles as well, the firm is subject to: based on:
A. constant returns to scale A. Increasing returns to scale
B. increasing returns to scale B. Decreasing returns to scale
C. decreasing returns to scale
