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PUSHKARAM COLLEGE OF AGRICULTURE SCIENCES

(Affiliated to the Tamil Nadu Agricultural University)
Veppangudi, Thiruvarankulam P.O, Pudukkottai- 622 303.
B.Sc.(Hons) Agri Degree Programme
Year : 2018 AEC 201 Farm Management, Production and Resource
Semester : III Economics (1+1)
Choose the correct answer
1. Economic profit is calculated as:
A) Total revenue minus B) Total revenue plus explicit costs plus implicit
explicit costs costs
C) Total revenue minus D) Total revenue minus explicit costs minus
implicit costs implicit costs
2. Which of the following cost is not a fixed cost?
A) depreciation B) taxes
C) Seeds D) Interest
3. Isoquants are linear, when the resources are:
A) Substitutes B) Complements
C) Perfect substitutes D) Perfect complements
4. In the production function, input is:
A) Dependent variable B) Independent variable
C) Intercept D) none
5. When MRPS=0, then the product are:
A) Complementary B) Supplementary
C) Competitive D) Antagonistic
6. At breakeven point in a production programme, the profit to the farmer is
A) Negative B) Positive
C) Zero D) Cannot be calculated
7. Which of the following is irrational zone of production?
A) I zone B) II zone
C) III zone D) I and III zones
8. APP indicates the technical efficiency of -------- resources
A) Fixed B) Variable
C) Both D) None of them
9. The elasticity of production is zero when
A) APP is maximum B) MPP is maximum
C) MPP is zero D) TPP is minimum
10. Which of the fallowing is non-cash fixed cost?
A) Repairs B) Depreciation
C) Premium D) Tax
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11. Which of the fallowing is a component of marginal cost?

A) Fixed cost B) Variable cost
C) Both (a) & (b) D) Opportunity cost
12. Which of the following costs include managerial services component
A) Cost A1 B) Cost C3
C) Cost B1 D) Cost D
13. At Breakeven point in a production programme, an economist advise the farmer
A) To continue production B) To stop production programme temporarily
programme temporarily
C) To increase the fixed D) To stop production programme permanently
cost
14. Due to depreciation, the value of an asset
A) Increases B) Decreases
C) Remains constant D) None
15. Which of the fallowing is separates complementarity from substitution?
A) Isocline B) Price line
C) Ridge line D) All the three
16. In a production function, when MPP increases, TPP is -------
A) Increases at increasing B) Increases at decreasing rate
rate
C) Increases at constant D) Decreases at increasing rate
rate
17. In a production function, when MPP is zero, TPP is ------
A) Increases at increasing B) Increases at decreasing rate
rate
C) Maximum D) zero
18. Elasticity of production in zone I of production function is -------
A) More than one B) Equal to one
C) Less than one D) zero
19. Elasticity of production at the end of zone II of production function is -----
A) More than one B) Equal to one
C) Less than one D) zero
20. Technical efficiency of both fixed and variable resources decreases in --------- of
production function.
A) Zone I B) Zone II
C) Zone III D) Zone I and III
21. In zone I of production function,
A) MR<MC B) MR>MC
C) MR=MC D) None
22. In zone III of production function,
A) MR<MC B) MR>MC
C) MR=MC D) None
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23. Which of the following is a rational / optimal zone?

A) Zone I B) Zone II
C) Zone III D) None
24. In general, average cost curves are ------ shaped
A) S shaped B) U shaped
C) Parallel to x-axis D) None
25 ----------- cost have more bearing in making production decisions
A) Fixed B) Variable
C) Implicit D) Opportunity
26. Fixed cost are also called as ------costs
A) Overhead B) Marginal cost
C) Opportunity cost D) none
27. Additional cost incurred to produce additional unit of output is:
A) Marginal cost B) Marginal input cost
C) Average cost D) Opportunity cost
28 When the business activity is nil, total cost is equal to?
A) Opportunity cost B) Fixed cost
C) Marginal cost D) zero
29. Isoquant is also known as
A) Product indifference B) Production possibility curve
curve
C) Iso resource curve D) Price line

30. Inputs which increase output the output when combine in fixed proportion are
called
A) complements B) Supplements
C) Substitutes D) none
31. Tractor hours and man hours are
A) Perfect complements B) Perfect supplements
C) Perfect substitutes D) None
32. Production possibility curve is also known as
A) Product indifference B) Isoquant
curve
C) Iso resource curve D) Price line
33. The concept of opportunity cost was introduced by
A) J.S.Mill B) J.M.Keynes
C) Alfred Marshall D) Ricardo
34. In case of join products, the production possibility curve is ------
A) ‘L’ Shaped B) Inverted ‘L’ shaped
C) Concave D) ‘U’ Shaped
35. For supplementary enterprises, MRPS is
A) Greater than zero B) Less than zero
C) Equal to zero D) Infinity
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36. For competitive enterprises, MRPS is

A) Greater than one B) Less than zero
C) Equal to one D) Infinity
37. The scope of farm management science is-------
A) Intra farm study B) Inter farm study
C) Macro economic D) None
38. The scope of production economics is
A) Intra farm study B) Inter farm study
C) Micro economic D) None
39. Which of the following is considered as ‘Law of life’?
A) Law of diminishing B) Time comparison principle
returns
C) LEMR D) Minimum loss principle
40. The period between cash outflow and cash inflow in a project is called
A) Accounting period B) Transformation period
C) Gestation period D) Production period
41. Which of the fallowing is a power function?
A) Linear function B) Cobb-Douglas function
C) Quadratic function D) none
42. Which of the fallowing is the social factor influences the selection of farm in an
area?
A) Topography B) Local taxes
C) Transport facility D) Accessibility to schools
43. Greater risk is involved in ------ type of farming
A) Diversified farming B) Specialized farming
C) Mixed farming D) Ranching
44. ---------- type of farming ensures better utilization of farm by-products
A) Diversified farming B) Specialized farming
C) Mixed farming D) Ranching
45. Which of the fallowing is a system of farming?
A) Diversified farming B) Specialized farming
C) Cooperative farming D) Ranching
46. -------- is a system of farming managed by government officials
A) State farming B) Peasant farming
C) Cooperative farming D) Capitalist farming
47. In collective farming, ownership is
A) society B) Individual
C) Government D) None
48. In capitalistic farming, ownership is
A) Society B) Individual
C) Government D) None
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49. Which of the following is the best type of available labour for farm operations?
A) Permanent labour B) Casual labour
C) Farm manager’s labour D) Unskilled labour
50. Join products are those products in which?
A) Main product produced B) By-product produced first
first
C) Two products produced D) None of the above
together
51. At breakeven point in a farm business,
A) Fixed cost=variable B) Total cost = total returns
cost
C) Marginal cost = D) All the above
marginal return
52. Which of the following is not a type of farming?
A) Dry Farming B) Ranching
C) Joint farming D) Mixed farming
53. Production is a function of
A) Profits B) Goods
C) Prices D) Factors

54. Marginal return is nothing but

A) MPP multiplied by B) MPP multiplied by price/input
price/output
C) MPP divided by D) MPP divided by APP
price/output
55. The cost which are not paid to others are called
A) Fixed Cost B) Implicit cost
C) Explicit cost D) Overhead cost
56. When variable cost is equal to zero, total cost is

A) Equal to zero B) Equal to fixed cost

C) Equal to opportunity D) None of the above
cost
57. A group of technical units is called
A) Economic unit B) Farm-firm
C) Plant D) All the above
58. Which of the following gives the correct measure of cost of cultivation?
A) Cost B +interest on B) Cost B + interest on working capital
fixed capital
C) Cost B + imputed value D) Cost B + rental value of owned land
of family labour
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59. When there is no production?

A) There are no fixed costs B) There are no variable costs
C) Marginal cost is D) AVC is higher than AFC
maximum
60. The point at which total cost is equal to total revenue is
A) Inflection point B) Point of LCC
C) Point of OPC D) None

Fill in the Blanks with Correct Answer:

1. Cost equivalent to the returns from the next best alternative foregone is
called --------------
2. The inputs which increase the output only when combined in fixed
proportion are called -------------
3. In ----------- production function, some inputs are fixed and some are
variable
4. ‘how much to produce’ implies ------------ relationship
5. MC involves -----------costs
6. At the point, when MPP=0, elasticity of production is -----------
7. Isoquant is otherwise called as -----------
8. The slope of isoquant is indicates ------------
9. Isocost line otherwise called as -----------
10.Ridge line is otherwise called as ---------
Match the following:
1. What to produce - Factor-factor relationship
2. Isoquant - L-shaped isoquant
3. Complementary resources - U-shaped curve
4. How to produce - Rectangular hyperbola
5. Joint products - Family labour&hired labour
6. AFC curve - Product-product relationship
7. ATC curve - Positive slope
8. Production possibility curve - Factor-product relation
9. Perfect substitutes - Inverted L-shaped production possibility
Curve
10.How much to produce - Negative slope