Economics for executives

_____ is the relationship between inputs of productive series per unit of time & outputs of product per unit of time

• Capital

• Production function

• Organisation

____ output is the total product obtained from the efforts of all the factors of production combined together

• Total

• Average

• Marginal

_____ is the study of costs, revenues & sales of a firm & finding out the volume of sales whether firm's cost & revenue will be equal

• Average revenue

• Marginal revenue

• Break Even Analysis

Amount of money which a firm receives by sale of it output in the market is called

• Revenue

• Average revenue

• Marginal revenue

__ refers to extent to which the firm can afford a decline in sales before it starts incurring losses

• Safety margin

• Target profit

• Revenue

Who directs & organises business and takes the decision of risk and loss ?

• Entrepreneur

• Manager

• Supervisor

__is the human factor of production

• Organization

• Capital

• Land

__ establishes a relationship between input and output and points out that with increasing input, output has a tendency to decline under certain circumstances

• Law of increasing returns

• Law of constant returns

• Law of diminishing returns

Law of variable proportion states that the quantity of one factor of production is increased, while keeping all other factors constant, it will result in the decline of the marginal product of that factor.

• True

• False

___means expenses incurred in the production of a commodity

• Cost

• Revenue

• Land