2016 E.

C, Economics 2nd semester test 3 for Grade 11th

Name ______________________ Grade & Sec_______ Number_________ Time allowed 20’
I) choose the correct answer from the given alternatives (1pt each): encircle your answer
1) All inputs used in production are broadly classified into:
a)
b) land, labour, capital and d) labour, and capital
entrepreneurship. e) Land and labour
c) land, labour, and capital
2) Which of the following is an example of fixed input?
a) Plant and equipment c) Power
b) Labour d) Raw material
3) _________ is the total amount of output resulting from the use of different quantities of
inputs.
a) Total product (TP) c) Average product (AP).
b) Marginal product (MP) d) All of these
4) Which of the following is true on the relationship between MP and AP?
a) When MP > AP, this means that AP is c) When MP < AP, this means that AP is
rising, falling.
b) When MP = AP, this means that AP is d) All of these
maximum,
II) Write ‘’true’’ if the statement is correct ‘’false’’ if the statement is incorrect(1pts each)
1) Short-run refers to the period of time over which all inputs are variable.________
2) Average fixed cost is per unit cost of the variable factors of production. _________
3) Average total cost curve can never touches average variable cost curve.__________
4) Constant Returns to Scale occurs when output increases by a greater proportion than the
proportion of increase in all the inputs._____________
III) Workout question(2 pts)
1) Assume the total cost of a producer of a commodity in the short run is given by the
equation: TC=100+10 Q2, where: TC= total cost, Q= level of output. Using the given
total cost find equation/value for:
a) Variable costs:________________________________
b) Fixed costs:__________________________________
c) Average variable costs:___________________________
d) Marginal cost:_________________________________

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