Economics

Subdecks (5)

Cards (115)

  • 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