MCQ on Farm management & Production Economics
1. Success of a farm plan depends to a great extent, on the accuracy of basic date regarding:
A. Estimates of production from crops animals
B. Right production of crops and livestock in relation to fodder and feed requirement
C. Availability of capital for investment in a particular enterprise
D. All of these
2. When farmers pool their land, labour and capital and work jointly under the direction of an elected managing committee and divide the profit among themselves in probortion of land contributed and wages earned by each one of them it is called?
A. Co-operative farming
B. Collective farming
C. Capitalist farming
D. Peasant farming
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3. The capital that is consumed by a farm in the production process is called as:
A. Capital cost
B. Production cost
C. Depriciation
D. Dead-weight lost
4. Who propounded the opportunity cost theory of international trade?
A. Marshall
B. Ricardo
C. Haberler
D. Heckscher & Ohlin
5. Relative income hypothesis was given by:
A. Adam smith
B. Duesenberry
C. Ande and Modigliani
D. J.M. Keynes
6. In which planning period we can change the output by altering the size of form:
A. Long run
B. Short run
C. Both (a) and (b)
D. None of the above
7. In which relationship increase or decrease in the production of one product affects the production of the other commodity inversely:
A. Joint product
B. Supplementary
C. Complementary
D. Competitive
8. Which of the following is not a component of farm business?
A. Capital
B. Environment
C. Land
D. Management
9. In which planning period profit rule says that gross return should cover variable cost:
A. Long run
B. Short run
C. Both (a) and (b)
D. None of the above
10. In which planning period we can change the output without altering the size of the plant:
A. Long run
B. Short run
C. Accounting period
D. Base year period
11. Which of the following is not a type of farming on the basis of land use and cultural practices classification?
A. Tenant farming
B. Specialized farming
C. Diversified farming
D. Mixed farming
12. Which of the following is not a farming system on the basis of ownership and management classification?
A. Tenant farming
B. Co-operative farming
C. Mixed farming
D. State farming
13. The horizontal demand curve parallel to x-axis implies that the elasticity of demand is:
A. Zero
B. Equal to 1
C. Infinite
D. Greater than Zero but less than infinity
14. The supply of a good refers to:
A. Stock available for sale
B. Total stock in the warehouse
C. Actual production of the good
D. Quantity of the good offered for sale at a particular price per unit of time
15. The cost of one thing in terms of the alternative given up is called:
A. Real cost
B. Production cost
C. Physical cost
D. Opportunity cost
16. Keeping few birds, some fruit trees and a small garden on farm are the:
A. Complementary enterprise
B. Competitive enterprise
C. Supplementary enterprise
D. None of these
17. Which of the following is not a component of farm business?
A. Land
B. Capital
C. Labour and Management
D. Water
18. Land holding of either 10 or more hectares have been classified as:
A. Semi-medium
B. Medium
C. Semi-large
D. Large
See… TYPES OF FARMERS-GOVERNMENT INITIATIVES
19. Land reforms have been equated with total——-development:
A. Urban
B. Agrarian
C. Industrial
D. Education
20. In which of the following market structure is the degree of control over the price of its product by a firm very large?
A. Perfect competition
B. Imperfect competition
C. Monopoly
D. Both A & B
21. Which of the following falls under physical farm record.
A. Sales register
B. Machinery use record
C. Stationary register
D. Auction Register
22. Which of the following falls under farm financial record.
A. Sales register
B. Farm inventory
C. Stationary register
D. Auction Register
23. Which of the following falls under supplementary farm record.
A. Sales register
B. Both c & d
C. Stationary register
D. Auction Register
24. Demand for factors of production is:
A. Derived demand
B. Joint demand
C. Composite demand
D. None of the above
25. Production is function of ?
A. Factor
B. Price
C. Good
D. Profit
26.The slope of———–denotes the rate of substitution between two resources.
A. Isoquant
B. Isoclines
C. Ridge line
D. expansion path
27. Level of output of a particular commodity depends upon the quantities of inputs used for its production. This relationship is known as:
A. Production process
B. Product mix
C. Production function
D. Cost function
28. Under condition of perfect competition in the product market:
A. MRP = VMP
B. MRP > VMP
C. VMP > MRP
D. None of these
29. The return from best alternate use of that input forgone by putting it to the present use is known as:
A. Average cost
B. Total cost
C. Marginal cost
D. Opportunity cost
30. Which of the following is an economic factor, affects the type or system of farming?
A. Availability of capital
B. Water
C. Land
D. All of the above
31. Management decisions, which involve lasting effects, are known as:
A. Operational decisions
B. Strategic decisions
C. Marketing problem decisions
D. Administrative decisions
32. Marginal cost is equal to:
A. Change in total cost/change in output
B. Change in total cost + 100
C. Average fixed cost
D. None of the above
33. Marginal cost is equal to:
A. The average cost of the total output produced
B. The difference between average cost and the cost of the last unit produced
C. The cost of the last but one unit produced
D. The extra cost of an additional unit produced
34. Marginal cost is the:
A. Change in cost due to one unit change in input
B. Change in cost due to one unit change in output
C. Change in variable cost due to one unit change in input
D. None of the above
35. Marginal farmers are those farmers having land holding:
A. Less than 5 acres
B. Less than 2 acres
C. Less than 1 acre
D. All of these
36. Marginal product is the:
A. Output per unit of input
B. Total output divided by total input
C. Change in output due to one unit change in input
D. Change in input due to one unit change in output
37. Maximum profit will be at the point where:
A. M.C. = M.R.
B. M.C. is more than M.R.
C. M.C. is less than M.R.
D. None of the above
38. Which statistical measure helps in measuring the purchasing power of money?
A. Harmonic mean
B. Arithmetic average
C. Index numbers
D. Time series
39. Which one of the following is administrative decision?
A. Financing the farm business
B. Accounting and book-keeping
C. Adjustments of government programmes and policies
D. All of these
40. Normally a demand curve will have the shape:
A. Horizontal
B. Vertical
C. Downward sloping
D. Upward sloping
41. Mines and Fishes are subject to the law of:
A. Diminishing return
B. Increasing return
C. Constant return
D. None of the above
42. Net capital ration is equal to:
A. Total assets/Total liabilities
B. Total liabilities/Total assets
C. Total assets/Current liabilities
D. None of the above
43. When variable cost is zero, the total cost will be?
A. Equal to variable cost
B. Equal to fixed cost
C. Equal to average variable cost
D. None of the above
44. Opportunity cost is:
A. Cost of supplementary enterprise
B. Cost of next best alternative foregone
C. Cost of cultivation
D. Cost of production
45. Optimizing the use of farm resources on an individual farm level. It is a:
A. Farm management
B. Production economics
C. Agricultural marketing
D. Macro economics
46. Who defined economics as a “science which studies human behaviour as a relationship between ends and means which have alternative uses”:
A. Paul Samuelson
B. Robbins
C. Alfred Marshall
D. Robbinson
47. Per hectare calculated cost is known as:
A. Cost of cultivation
B. Cost of production
C. Cost of farming
D. Total cost
48. Per Qunital calculated cost is known as:
A. Cost of cultivation
B. Cost of production
C. Cost of farming
D. None of the above
49. The relationship between cost function and production function is:
A. Positive
B. Negative
C. Increase
D. None of these
50. The resources, if their services are not used, these cannot be stocked are known as:
A. Stock resources
B. Flow resources
C. Fixed resources
D. All of the above
51. When total product is highest, marginal product will be?
A. Minimum
B. Maximum
C. Zero
D. Increasing
52. When total cost is divided by total units of the production, we get?
A. Marginal cost
B. Average cost
C. Fixed cost
D. Variable cost
53. Law of demand shows relation between:
A. Income and price of commodity
B. Price and quantity of commodity
C. Income and quantity demanded
D. Quantity demanded and quantity supplied
54. Which of the following is not a feature of Iso-product curve? Iso-product curves:
A. Are downward sloping to the right
B. show different input combinations producing the same output
C. intersect each other
D. are convex to the origin
55. A piece of land where crop and livestock enterprises are taken up under common management and has specific boundaries is called as?
A. Farm
B. Field
C. Estate
D. Ranch
56. Farm Management is generally considered to be————-in its scope.
A. Macroeconomic
B. Microeconomic
C. Both
D. None of these
Read also… FARM MANAGEMENT- DEFINITION & OBJECTIVES
57. Which one is a type of farm that produces only enough food to feed the family.
A. Commercial farm
B. Subsistence farm
C. crop farm
D. Dairy farm
58. Which of the following is not insurable?
A. Uncertainty
B. Risk
C. Price
D. None
59. What involves mathematical programming model?
A. Farm budgeting
B. partial budgeting
C. Linear programming
D. Enterprise budgeting
See also…
MCQ on Farm management Economics Part 1