Economics

• Production is a process that create/adds value or utility
• INPUTS - The factors of production such as Land, Labour, Capital, Technology ,etc
• OUTPUTS - The goods and service produced such as Soap, Omni Car ,etc
• LAND -Natural resources  such as surface, mineral , air, rivers, sea, etcFree gift of nature, fixed
• LABOR - Mental or physical effort done by a man
• CAPITAL - Man made goods used in the production process, Most mobile factor
• ORGANIZATION - Entrepreneur or coordinator of all other factors of  production
• What is the basic Production Function Formula?

  Q=f(KL)
• This letter stands for the amount of goods or services produced, the output?

  Q
• This letter stands for more or less fixed?

  F
• This letter stands for capital or fixed resources (meaning they don't change?

  K
• It is referring to the human resources a business uses to produce its good or service?

  LABOR
• The total amount that is produced during a given amount of time?

  TOTAL PRODUCTION
• This is the Ratio of Total Product and one variable input Formula: TP/Variable input?

  AVERAGE PRODUCT
• This is the rate of change of output as a result changes in one variable input?

  MARGINAL PRODUCT
• This is encompassing around Law of Diminishing Return ( Short run production) whereas one input is variable?

  LAWS OF VARIABLE PROPORTION
• This is a Long run production function whereas all inputs are variable?

  LAWS OF RETURN SCALES
• What are the stages in law of variable proportion?

  INCREASING RETURN DIMINISHING RETURN NEGATIVE RETURN
• This represent all those possible combination of two inputs (labour and capital), which is capable to produce an equal level of output?

  ISOQUANTS
• It is the rate at which one factors of production is substitute with other factor so that  the level of the output remain the same?

  Marginal Rate of Technical Substitution