CUET PYQs for Production Function with Solutions: Practice CUET Previous Year Questions

Which of the following definition is correct answer of the production possibility set of the economy?

The collection of all possible combinations of the goods and services that can be produced from a given amount of resources and a given stock of technological knowledge is called?

Consider the production function \(q = f(x_1, x_2)\) where the firm produces \(q\) amount of output using \(x_1\) amount of factor 1 and \(x_2\) amount of factor 2. The firm decides to increase the employment level of both factors by \(t\) (\(t>1\)). Identify the equation for decreasing returns to scale from the following:

............... of an input is defined as the change in output per unit of change in the input when all other inputs remain constant.

In the long run ..................

Match List-I with List-II: \[ \begin{array}{|c|l|c|l|} \hline \textbf{List-I} & & \textbf{List-II} & \\ \hline (A) & \text{Relationship between the variable input and output.} & (III) & \text{Law of Variable Proportions} \\ \hline (B) & \text{Output per unit of variable input.} & (I) & \text{Average Product} \\ \hline (C) & \text{Change in output per unit of change in the input.} & (II) & \text{Marginal Product} \\ \hline (D) & \text{The marginal product of a factor input initially rises with its employment level.} & (IV) & \text{Total Product} \\ \hline \end{array} \]

When the aggregrate revenue received by the firms is paid out to the factors of production, it takes the form of _________