AEC 201 (1+1): Farm Management, Production and Resource Economics Question Paper

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Q.I. Fill in the blanks with appropriate word/s (0.25 × 8 = 2.00)

1. ________ period is the time required to transform input into output.

2. A production function with an elasticity of production of more than one indicates ________ returns.

3. ________ cost vary with the level of output.

4. Minimization of cost is the main aim of ________ relationship.

5. Farm management is a ________ science.

6. ________ decisions are those decisions which involve less investment and are made more frequently.

7. Least cost combination is the point where ________.

8. ________ rate of product substitution is common in agriculture.

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Q.II. State TRUE or FALSE (0.25 × 8 = 2.00)

1. There is no fixed supply of land.

2. Producers are price fixers.

3. Returns to scale is a long run concept.

4. Agricultural production economics deals with allocative efficiency.

5. At the end of second region of production function, MP is negative.

6. All factors of production are varied in laws of returns.

7. Farm management is a macro approach.

8. LEMR is applicable when resources are unlimited.

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Q.III. Underline the appropriate answer from the alternatives given (0.5 × 12 = 6.00)

1. Isoquant is also called as
   a) Iso-resource curve
   b) Iso-factor curve
   c) Iso-product curve
   d) Opportunity curve

2. The returns forgone in the next best alternative is called as
   a) Marginal cost
   b) Opportunity cost
   c) Development cost
   d) Input cost

3. If the two inputs are completely interchangeable, then they are called as
   a) Perfect complements
   b) Perfect supplements
   c) Perfect substitutes
   d) None of these

4. ________ lines represent the limits of economic relevance
   a) Ridge
   b) Isocost
   c) Iso revenue
   d) None of these

5. The optimum level of output is found out by ________ method/s
   a) Tabular
   b) Graphic
   c) Algebraic
   d) All of these

6. Product – Product relationship deals with
   a) When to produce?
   b) What to produce?
   c) How much to produce?
   d) Where to produce?

7. Principle of equi-marginal returns is used under ________ situation
   a) Unlimited capital
   b) Limited capital
   c) Both a & b
   d) None of these

8. The MRPS for supplementary products is
   a) Positive
   b) Negative
   c) Zero
   d) None of these

9. Elasticity of production is the ratio of
   a) MPP/TPP
   b) MPP/APP
   c) APP/MPP
   d) None of these

10. When MP is zero, TP is
    a) Maximum
    b) Minimum
    c) Zero
    d) Both a & b

11. In first stage of production function, elasticity of production is ________ unity
    a) More than
    b) Less than
    c) Equal to
    d) None of these

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Q.III. Define or give the meaning of the following in one sentence (1 × 6 = 6.00)

a) Production function
b) Isoquant curve
c) Inflection point
d) Opportunity cost
e) Marginal product
f) Returns to scale

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Q.IV. Answer the followings (Any Three) (3 × 3 = 9.00)

1. Explain the three stages of classical production function with diagram?

2. Write the types of product-product relationships

3. What is farm management? Explain the types of farm management decision

4. Explain the following:
   a) Ridge line
   b) Isocost line
   c) Expansion path