Production Revision Test: AP Microeconomics

The concept of Expansion Path of the firm is applicable when the Output is increased by: I change in the size of the plant II change in the state of Technology III increase in the level of the two inputs
I only
II only
III only
I and II
II and III
In the case of strong Increasing Returns to Scale, the Returns to a Variable factor of Production are:
Zero
Constant
Increasing
Decreasing
Variable
At times, Constant Returns to Scale might not be possible because: I the required Production process does not exist II the level of Output is fixed III a proportionate change in all inputs
I only
II only
III only
I and II
II and III
What will happen to the Marginal Product of one Variable input when the Returns to Scale are constant?
it increases
it decreases
it remains constant
it becomes zero
it cannot be determined
On what basis are Returns to Scale classified as Constant, Increasing or Decreasing?
Amount of Output produced from a given amount of Input
Inputs required to produce a given level of Output
Prices of Inputs
Cost of Production
Response of Output to change in Scale
When a proportional change in Input causes less than proportionate change in Output, it is the case of:
Increasing Returns to a factor
Increasing Returns to Scale
Decreasing Returns to a factor
Decreasing Returns to Scale
Constant Returns to Scale
When the Returns to Scale are increasing at a very low rate, the Returns to a Variable Factors are:
Constant
Decreasing
Increasing
Constant or Decreasing
Constant or Increasing
When the entrepreneur’s Money Outlay increases with other things remaining the same, the Equilibrium point:
moves to a lower Isoquant
moves to the left on the same Isoquant
moves to the right on the same Isoquant
moves to a higher Isoquant
remains unchanged
At the least cost Input combination on the Expansion Path, the Money Outlay of the entrepreneur changes when: I Price of one input changes and the other remains constant II Prices for both the Inputs remain constant III Relative Prices for both the Inputs remain constant
I only
II only
III only
I and II
II and III
It is not always possible for the Inputs to increase proportionately for the application of Returns to Scale because: I the Production process is rigid II the Inputs are indivisible III the inputs are scarce
I only
II only
III only
II and II
I, II and III
Description:

This test on Microeconomics assesses your knowledge on the basics of the Production Function, the Expansion Path and most important Returns to Scale. This Revision Test is a must for quickly revising the basic concepts of Production Function. Attempt all Multiple Choice questions in just 7 min. This test is really handy for any student of AP Microeconomics.

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