Production Function class 11 important question

Q1. What do you mean by the supply of goods?

a) Stock available for sale
b) Total stock in the warehouse
c) The actual production of the goods
d) Quantity of the goods offered for sale at a particular price per unit of time
Answer:- d
Q2. What do you mean by ‘under conditions of a perfect competition in the
product market’?
a) MRP = VMP
b) MRP > VMP
c) VMP > MRP
d) None of the above
Answer:- a
Q3. Which of the following is the relation that the law of demand defines?
a) Income and price of a commodity
b) Price and quantity of a commodity
c) Income and quantity demanded
d) Quantity demanded and quantity supplied
Answer:- b 

Q4. What do you mean by a mixed economy?

a) Modern and traditional industries
b) Public and private sectors
c) Foreign and domestic investments
d) Commercial and subsistence farming
Answer:- b
Q5. What do you mean by the demand of a commodity?
a) Desire for the commodity
b) Need for the commodity
c) Quantity demanded of that commodity
d) Quantity that consumers are able and willing to buy at various prices during
any particular period of time
Answer:- d
Q6. Starting from the time of independence, why did India follow a planned
economy?
1.India followed a five-year plan and required an outlook.
2.Directive Principles of Indian Constitution  indicated the planned vision of
India.
3.There was no indication whatsoever from the five year plans regarding how
much of each and every good and service is to be produced.
Choose the correct statements from the given options
     a) Only 2
     b) 2 and 3
    c) 1 and 3
    d) All of the above
Answer:- b
Q7. What do you mean by Gross National Product?
a) The total value of goods and services produced in the country
b) The total value of all the transactions in the country
c) The depreciation in the total value of goods and services produced in the
country
d) The total value of goods and services produced in the country and the net factor
income from abroad
Answer:- d
Q8. Which of the following is the reason for the decline in the child sex ratio
in India? 
a) Low fertility rate.
b) Female foeticide
c) Incentives for a boy child from the government
d) None of the above
Answer:- b
Q9. What factors are taken into consideration while revising the poverty line
periodically?
a) By conducting a survey every five years
b) Survey carried out by National Sample Survey Organisation
c) Both a and b
d) None of the above
Answer:- c
Q10. In India, which banks/institutions have the highest share in the
disbursement of credit to agriculture and allied activities?
a) Cooperative banks
b) Regional Rural Banks
c) Commercial banks
d) Microfinance institutions
Answer:- c
Q11. Which of the following is/are linked with the financial sector of India
and controlled by the Reserve Bank of India (RBI)?
a) Commercial bank
b) Money lenders
c) Stock exchange operations
d) All of the above
Answer:- c
Q12. When price floor is set above equilibrium price it will result in?
a) Shortage
b) Surpluses
c) Equilibrium
d) None of the above
Answer:- b
Q13. What is Gross Domestic Product?
a) The total value of goods and services manufactured in the country
b) The total value of all the transactions in the country
c) The reduction in the total value of goods and services produced in the country
d) The monetary value of all finished goods and services made within a country
during a specific period.
Answer:- d
Q14. Why is the unemployment rate low in India statistically?

1. Unemployment is calculated only from the age group of 15 years to 59

years.
2. Unemployment survives only when an individual cannot find a job.
3. People are not interested in working outside the domestic area.

Choose the correct option.

a) Only 3
b) 2 and 3
c) Only 2
d) All of the above
Answer:- c
Q15. What does the bowed-out shape of the production possibilities curve
illustrate?
a) Law of increasing opportunity cost
b) The production is inefficient
c) The production is unattainable
d) The demand is relatively elastic
Answer:- a
Q16. What is the main economic problem faced by the society?
a) Unemployment
b) Inequality
c) Poverty
d) Scarcity
Answer:- d
Q17. What does “Capitalism” refer to?
a) The use of market
b) Government ownership of capital
c) Private ownership of capital goods
d) Private ownership of homes and cars
Answer:- c
Q18. The goal of a pure market economy is to meet the desire of ______ .
a) Consumers
b) Companies
c) Workers
d) The government
Answer:- a
Q19. What does the law of demand mean?
a) As the quantity demanded rises, the price rises.
b) As the price rises, the quantity demanded rises.
c) As the price rises, the quantity demanded falls.
d) As the supply rises, the demand rises.
Answer:- c
Q20. Which of the following is an example of an agricultural price support
program?
a) A price ceiling
b) A price floor
c) Equilibrium pricing
d) None of the above
Answer:- b
Q1. Statistics Is Applied In..

(A) Economics
(B) Business Management
(C) Commerce And Industry
(D) All Of These

Show Answer
(D) All Of These
Q2. Which Is Not Considered As An Economic Activity ?(A) Banking
(B) Sujata Helping Her Mother In The Kitchen
(C) Agriculture
(D) Business

Show Answer
(B) Sujata Helping Her Mother In The Kitchen

Q3. Stages Of Statistical Study Are…

(A) 2
(B) 3
(C) 5
(D) 6

Show Answer
(C) 5

Q4. Statistics Is Both A Science As Well As ..

…According Prof. Topper.

(A) Sociology
(B) Geography
(C) English
(D) An Art

Show Answer
(D) An Art

Q5. Economics Is Essentially The Study Of …Problems.

(A) Political
(B) Economic
(C) Religious
(D) None Of These

Show Answer
(B) Economic

Q6. Which Of The Following Is Not A Function Of Statistics?

(A) Economic Forecasting
(B) Economic Equilibrium
(C) Political Equilibrium
(D) Construction Of Economic Models

Show Answer
(C) Political Equilibrium

Q7. The First Stage Of Statistical Study Is..

(A) Analysis Of Data

(B) Presentation Of Dat(A).
(C) Organisation Of Data
(D) Collection Of Dat(A).

Show Answer
(D) Collection Of Dat(A).

Q8. Data Collected For The First Time From The Source Of Origin Is
Calle(D). …,…..

(A) Primary Data

(B) Secondry Data
(C) Internal Data
(D) None Of These

Show Answer
(A) Primary Data

Q9. Which Of The Following Is A Method Of Secondry Data?

(A) Direct Personal Investigation

(B) Direct Oral Investigation
(C) Collection Of Information Through Questionnaire.
(D) None Of These

Show Answer
(D) None Of These

Q10. He is known as father of statistics:

(a) Bowley
(b) Bodington
(c) Gottfried Achenwall
(d) None of these.

Show Answer
(b) Bodington

Q11. Statistics is:

(a) Facts
(b) Presentation
(c) Numerical data
(d) None of these.

Show Answer
(b) Presentation

Q12. Name of the book by Kautilya:

(a) Economics
(b) Varta
(c) Krishna, Valmiki and Vashista
(d) None of these.

Show Answer
(a) Economics

Fill in the blanks:

Q13. Adam Smith is known as …………………………. of Economics.

Show Answer
Father

Q14. There is difference between wants and …………………………..

Show Answer
Intensity

Q15. Collection is an example of ……………………….

Show Answer
Statistics

Q16. Statistics is an art as well as ………………………..

Show Answer
Science

Q17. When six economists gather they have …………………………. opinion

Show Answer
7
Q18. There are limited wants of humans.

Show Answer
False

Q19. “Principles of Economics” is written by Pigou.

Show Answer
False

Q20. Statistical data is numerical data.

Show Answer
True

Q1. State another name of Random Sampling:

(a) Chance sampling

(b) Drum Rotation method
(c) Lottery
(d) All of these.

Show Answer
(d) All of these.

Q2. First step of presentation of data is:

(a) Categorisation
(b) Tabulation
(c) Both (a) and (b)
(d) None of these.
Show Answer
(a) Categorisation

Q3. Which law should be kept is mind while and making tables:

(a) Correct size

(b) Correct measurement of unit
(c) Correct unit
(d) All of these.

Show Answer
(d) All of these.

Q4. In what type of papers pictures are drawn:

(a) Graph paper

(b) White paper
(c) Any
(d) None of these.

Show Answer
(b) White paper

Q5. When is ‘India’s coalition done:

(a) Every first year of every decade

(b) Every first year of century
(c) Every year
(d) Every five year.

Show Answer
(a) Every first year of every decade
Q6. State another name of Random Sampling:

(a) Chance sampling

(b) Drum Rotation method
(c) Lottery
(d) All of these.

Show Answer
(d) All of these.

Q7. First step of presentation of data is:

(a) Categorisation
(b) Tabulation
(c) Both (a) and (b)
(d) None of these.

Show Answer
(a) Categorisation

Q8. Which law should be kept is mind while and making tables:

(a) Correct size

(b) Correct measurement of unit
(c) Correct unit
(d) All of these.

Show Answer
(d) All of these.

Q9. In what type of papers pictures are drawn:

(a) Graph paper
(b) White paper
(c) Any
(d) None of these.

Show Answer
(b) White paper

Fill in the blanks:

Q10. ………………………… provides real data.

Show Answer
Researcher

Q11. ………………………… is present population data of India.

Show Answer
Census of India

Q12. When data is categorised according to time it is called

……………………………..

Show Answer
Chronological

Q13. Presentation of data in the form of table is called

………………………………

Show Answer
Tabulation
Q14. Bar diagram is a ………………………… diagram.

Show Answer
Unit

Q15. How many sources are there of index?

Show Answer
Two

Q16. What is bivariate frequency distribution?

Show Answer
A bivariate distribution is the frequency distribution of two variables.

Q17. What is complete census method?

Show Answer
It is a method of data collection in which data are collected for each and every
unit of the population which constitutes the subject matter of the study.

Q18. What is sample?

Show Answer
A sample refers to a group or section of the population from which data are
obtained.
Q19. What is Random sampling?

Show Answer
Method in which each and every item of the universe has an equal chance of
being selected in the sample is called Random sampling.

Q20. What is Non – Random sampling?

Show Answer
In Non – Random sampling every individual does not have an equal chance of
being selected.

Question 1
Does Total Physical Product increase only when Marginal Physical Product
increases?
Answer:
False, because when Total Physical Product increases Marginal Physical Product
decreases but remains positive.
Question 2
What will be the marginal product when the total product is maximum?
Answer:
Marginal Product will be zero when the total product is maximum.
Question 3
Total Physical Product is derived from Marginal Physical Product by?
(a) Cumulative addition
(b) Cumulative subtraction
(c) Cumulative product
(d) Cumulative Division
Answer:
(a) Cumulative addition
Question 4
What do you mean by production?
Answer:
Production is the method of producing or developing goods or services in large
quantities with the help of various materials.
Question 5
Increase in Total Physical Product indicates that there are increasing returns to a
factor. Comment.
Answer:
No, the total physical product also rises when the returns to a factor decrease.
Question 6
When the returns to a factor decline the marginal and the total product also
decline?
Answer:
False, when returns to a factor decline only Marginal Physical Product declines.
Question 7
Evaluate the marginal product for the following.

Variable Factor Unit 0 1 2 3 4 5 6

Total Unit 0 5 13 23 28 28 24
Answer:

Marginal Product 0 5 8 10 5 0 -4
Question 8
Why does the Average Fixed Cost curve never touch the “x” axis though it lies
very close to the x-axis?
Answer:
The Average Fixed Cost Curve (AFC) never touches the “x” axis though it lies
very close to the x-axis because Total Fixed Cost can never be zero.
Question 9
Production function shows a technical relationship between physical input and
output of a commodity.
(a) A technological relationship between inputs and cost
(b) The economic relationship between inputs and cost
(c) A technological relationship between inputs and output
(d) A technological relationship between inputs and price
Answer:
(c) A technological relationship between inputs and output
Question 10
The shape of the Total Physical Product short run is
(a) Inverse U-Shaped
(b) U-Shaped
(c) Hyperbola
(d) V-Shaped
Answer:
(a) Inverse U-Shaped
Question 11
In the short run Total Product Price changes with the change in which of the
following factors.
(a) Economic Cost
(b) Fixed Cost
(c) All the factors
(d) Variable Cost
Answer:
(d) Variable Cost
Question 12
When TVC is zero at zero levels of output, what happens to TFC or why TFC is
not zero at zero level of output?
Answer:
When TVC is zero at zero levels of output, what happens to TFC or why TFC is
not zero at zero levels of output because the fixed cost is to be acquired even at
zero levels of output.
Question 13
What is a change in quantity demanded?
Answer:
It is a change along a demand curve. The change is due to a change in price and
quantity of a commodity. The two types of change in quantity demand are
Extension in demand and Contraction in demand.
Question 14
Define cost concept. What are the different types of cost?
Answer:
The spending experienced on different inputs is known as the cost.
The different types of cost are as follows:
Money Cost- Total money spent by a company for manufacturing goods.
Explicit Cost & Implicit Cost- Payment made to an outsider are explicit and cost
of self-supplied inputs are implicit cost.
Real Cost- All hard work, discomforts, sacrifices involved in manufacturing a
product is called real cost.
Opportunity Cost- This the cost for the next best alternative foregone.
Short Run Cost- Fixed cost- Fixed factors cost
Variable Cost– Variable factor cost
Question 15
Explain the relation between Average Cost and Marginal Cost.
Answer:
The relation between Average Cost and Marginal Cost
1. When Average Cost decreases, Marginal Cost declines faster than the Average
Cost. So, that Marginal Cost curve remains lower than the Average Cost curve.
This means Average Cost > Marginal Cost.
2. When Average Cost increases, Marginal Cost rises faster than the Average
Cost. So, that MC curve is above the Average Cost curve.
3. Marginal Cost curve intersects Average Cost curve from its lowest point. When
the average curve is minimum then Marginal Cost=Average Cost.