LESSON 8 EXAM

The theory of production studies the relationship between ____ and output.

The short run is a period when ____

In the long run, all factors of production are ____

The law of diminishing returns applies in the ____

Which of these best describes production?

When marginal product is negative, total product is ____

Increasing returns to scale means ____

At the point where total product is maximum, marginal product is ____

Isoquants in production theory are similar to ____ in consumption theory.

The slope of an isoquant measures ____

Which of the following is NOT a factor of production?

The factor of production that is a gift of nature is ____

Human effort in production is called ____

Which factor of production organizes the others and bears risk?

Capital as a factor of production refers to ____

All natural resources that can be used in production are classified as ____

The factor of production considered the active agent is ____

Which factor of production is considered the ‘work of past labour’?

The factor of production that earns profit as a reward is ____

The factor of production that is least mobile is ____

The reward for land is called ____

The reward for labour is ____

The reward for capital is ____

The reward for entrepreneurship is ____

Which factor of production receives rent as income?

Wages are usually determined by ____

Interest is the payment for the use of ____

The factor of production that bears risk and uncertainty is rewarded with ____

Transfer earnings of a factor refer to ____

Economic rent is the payment made to a factor ____