Unit I Production Quiz

Isoquants are also called ________

• equal-factor curves

• equal product curves

• consumption-indifference curves

• production-indifference curves

_________indicates the rate at which factors can be substituted at the margin without altering the level of output

• Marginal Rate of Substitution

• Marginal Rate of Change

• Marginal Rate of Diversion

• Marginal Rate of Technical Substitution

Which of the following is NOT a property of an Isoquant

• They slope downward from left to right

• They do not intersect each other

• They are concave to the origin

• More production is better than less

When factors are perfect complements of each other, their isoquants are _______

• Parallel to each other

• At right angles

• Parallel

• Convex

When factors are perfect substitutes for each other, their isoquants are _________

• Straight lines

• Right angles

• Convex to the origin

• Concave to the origin

_______ are the locus of points of isoquants where the marginal product of one of the factors is zero.

• Tangent lines

• Parallel lines

• Ridge lines

• Horizontal lines

_______ means that all inputs or factors used in a production process are increased in the same proportion.

• An increase in scale

• An increase in length

• An increase in proportion

• An increase in height

If both labour and capital are increased in a given proportion and output expands by the same proportion, returns to scale are _______

• Increasing

• Decreasing

• Volatile

• Constant

Equal increases in output are obtained by successively smaller increments in inputs when returns to scale are _______

• Decreasing

• Increasing

• Constant

• None of the above

When more and more of inputs are required to obtain equal increments in output, returns to scale are ___________

• Decreasing

• Increasing

• Constant

• Volatile