CBSE Class 12 Economics Production and Costs Worksheet

Read and download free pdf of CBSE Class 12 Economics Production and Costs Worksheet. Students and teachers of Class 12 Economics can get free printable Worksheets for Class 12 Economics Part A Microeconomics Chapter 3 Production and Costs in PDF format prepared as per the latest syllabus and examination pattern in your schools. Class 12 students should practice questions and answers given here for Economics in Class 12 which will help them to improve your knowledge of all important chapters and its topics. Students should also download free pdf of Class 12 Economics Worksheets prepared by school teachers as per the latest NCERT, CBSE, KVS books and syllabus issued this academic year and solve important problems with solutions on daily basis to get more score in school exams and tests

Worksheet for Class 12 Economics Part A Microeconomics Chapter 3 Production and Costs

Class 12 Economics students should refer to the following printable worksheet in Pdf for Part A Microeconomics Chapter 3 Production and Costs in Class 12. This test paper with questions and answers for Class 12 will be very useful for exams and help you to score good marks

Class 12 Economics Worksheet for Part A Microeconomics Chapter 3 Production and Costs

Question. Which of the following statements regarding Service Industry is true?
(a) Service Industry uses less Capital Equipment
(b) Service Industry uses more Capital
(c) Service Industry uses no Capital Equipment
(d) Service Industry uses less Variable Factors
Answer: A

Question. Raw Material converted into Finished Product in the manufacturing process, refers to creation of
(a) Form Utility
(b) Place Utility
(c) Time Utility
(d) Personal Utility
Answer: A

Question. As a Factor of Production, Land lacks mobility. Lack of mobility means —
(a) Land cannot be used for anything other production of Rice.
(b) Land cannot be shifted from one place to another place
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: B

Question. If Oranges from Nagpur are made avai lable for Sale in a Department
(a) Form Utility
(b) Place Utility
(c) Time Utility
(d) Personal Utility
Answer: B

Question. Production includes —
(a) Mining
(b) Manufacturing
(c) Service providing
(d) All of above
Answer: D

Question. Which of the following is considered Production in Economics?
(a) Tilling of soil
(b) Singing a song before friends
(c) Preventing a child from falling into manhole on the road
(d) Painting a picture for pleasure
Answer: A

Question. Which of the following statements is true?
(a) Services of a Doctor are considered Production
(b) Man can create matter
(c) Services of a Housewife are considered Production
(d) When a man creates a table, he creates matter
Answer: A

Question. Production of Cellphones by a Manufacturing Company is an example of Production Activity. This statement is —
(a) True
(b) False
(c) Partially True
(d) None of the above
Answer: A

Question. Hawking of Fruits and Vegetables by a Street Vendor is an example of Production Activity. This statement is —
(a) True
(b) False
(c) Partially True
(d) None of the above
Answer: A

Question. Land is a specific factor of production. Why?
(a) It cannot be used at all
(b) It does not yield any result unless human efforts are employed.
(c) It is fixed and permanent
(d) It is a free gift of nature.
Answer: B

Question. Which of the following is not a characteristic of Land?
(a) Its supply for the economy is limited
(b) It is immobile
(c) Its usefulness depends on human efforts
(d) It is produced by our forefathers
Answer: D

Question. Production Activity involves creation of Utility. Such Utility can be created as —
(a) Form Utility
(b) Place Utility
(c) Time Utility
(d) All of the above
Answer: D

Question. Anything available above the earth's surface is called "Land". This statement is —
(a) True
(b) Fal se
(c) Partially True
(d) None of the above
Answer: A

Question. As a Factor of Production, Land is —
(a) A free gift of nature.
(b) Fixed in quantity
(c) Variable in terms of fertility and uses
(d) All of above are correct.
Answer: D

Question. Capital Formation is possible by —
(a) Using whole of the current capacity to produce only Consumer Goods
(b) Reducing present consumption to a certain extent
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: B

Question. Which one of the following is not a characteristic of land
(a) A Free gift of nature
(b) Its supply is fixed
(c) An active factor of production
(d) It has Different Uses
Answer: B

Question. ........ refers to mental or physical exertion directed to produce goods or services, and with a view to gain an economic reward.
(a) Land
(b) Enterprise
(c) Capital
(d) Labour
Answer: D

Question. If current consumption is reduced for the purpose of Capital Formation, that represents a
(a) Uneconomic activity
(b) Current sacrifice for future growth
(c) Decrease in demand
(d) Decrease in resources
Answer: B

Question. As a Factor of Production, the Elasticity of Supply of Land from the viewpoint of the entire economy is —
(a) Infinite
(b) Ze ro
(c) Positive
(d) Negative
Answer: B

Question. Production may be defined as an act of—
(a) Creating utility.
(b) Earning profit.
(c) Destroying utility.
(d) Providing services.
Answer: A

Question. Production refers to —
(a) Creation of value
(b) Addition of value
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: C

Question. Activities done out of pleasure, love and affection, pastime, hobbies, etc. may be very useful in increasing human well—being, and hence constitute Labour. This statement is —
(a) True
(b) Fal se
(c) Partially True
(d) None of the above
Answer: B

Question. Productive Resources required to produce goods and / or services are called —
(a) Resources of Production
(b) Concepts of Production
(c) Factors of Production
(d) Ideas of Production
Answer: C

Question. As a Factor of Production, the Supply of Land is f r om the viewpo int of the entire economy.
(a) Perfectly elastic
(b) Relatively elastic
(c) Relatively inelastic
(d) Perfectly inelastic
Answer: B

Question. To have an economic significance, Labour must be done with —
(a) The motive of some economic reward
(b) The motive of pleasure and satisfaction
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: A

Question. Which of these constitute a feature of "Labour", as a Factor of Production?
(a) Human Efforts
(b) Perishable Nature
(c) Weak bargaining power
(d) All of the above
Answer: D

Question."Labour", as a Factor of Production involves —
(a) Economic Considerations only
(b) Human and Psychological Considerations
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: C

Question. "Labour", as a Factor of Production involves —
(a) Free Gi ft of Nature
(b) Human Efforts
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: B

Question. Land is a Factor of Production.
(a) Natural
(b) Man Made
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: A

Question. As a Factor of Production, "Labour" is perishable. This means that —
(a) A day's labour lost cannot be completely recovered subsequently.
(b) Every human being is mortal and will have to leave this world some day or the other.
(c) Both (a) and (b)
Answer: A

Question. As a Factor of Production, a day's "Labour" lost cannot be —
(a) Measured at all
(b) Recovered at all
(c) Completely recovered
(d) None of the above
Answer: C

Question. Capital Formation is required for —
(a) Replacement and renovation of existing machinery and equipment
(b) Creating additional productive capacity
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: C

Question. Capital Formation is required for —
(a) Increasing the efficiency of production efforts
(b) Expansion of output of consumer goods in the future,
(c) Ensuring growth of the economy
(d) All the above
Answer: D

Question. Production refers to —
(a) Tangible goods and products
(b) Intangible services
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: C

Question. The purpose of Labour Laws is primarily to —
(a) Increase bargaining power of Labour
(b) Maintain Labour Welfare
(c) Guarantee work for each individual
(d) All of the above
Answer: B

Question. Labour is inseparable from the Labourer himself. This statement is —
(a) True
(b) False
(c) Partially True
(d) None of the above
Answer: A

Question. If a Worker terminates his employment with Company X, he —
(a) Can get employed in another Company
(b) Cannot get employed in any Company at all
(c) Becomes the Owner of Company X
Answer: A

Question. Which of these constitute "Labour"?
(a) Singing in the company of friends for the sake of pleasure.
(b) Singing against payment of a fee.
(c) Singing while walking on the road
(d) None of the above
Answer: B

Question. Which of these constitute "Labour"?
(a) Singing in the company of friends for the sake of pleasure.
(b) Singing against payment of a fee.
(c) Singing while walking on the road
(d) None of the above
Answer: B

Question. All Labour is not productive' in the sense that all efforts are not sure to produce want—satisfying goods and services. This statement is —
(a) True
(b) False
(c) Partially True
(d) None of the above
Answer: A

Question. "Labour", as a Factor of Production involves human efforts, with a view to gain —
(a) Pleasure only
(b) Mental satisfaction
(c) An economic reward
(d) Use of time
Answer: C

Question. Generally, Supply of Labour and Wage Rates are directly related. However, at very high wage rates, there is a paradox of reduction in labour. This paradox is attributed to —
(a) Preference to earn more money
(b) Preference to have more of rest and leisure
(c) Preference to restrict Supply
(d) None of the above
Answer: B

Question. Production is defined as
(a) Creation of matter
(b) Creation of utility in matter
(c) Creation of infrastructural facilities
(d) None of these
Answer: B

Question. If there is an increase in income levels, the .......... reduces.
(a) Propensity to consume
(b) Propensity to save
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: A

Question. Scheme of Subsidies for setting up industries in backward regions leads to —
(a) Balanced Regional Development
(b) Socially—Beneficial Capital Formation
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: C

Question. Supply of Labour and Wage Rates are directly related. This statement is —
(a) True
(b) Fal se
(c) Partially True
(d) None of the above
Answer: C

Question. Which of these is not a basic Factor of Production in Economics?
(a) Land
(b) Enterprise
(c) Capi tal
(d) Money
Answer: D

Question. Which of the following is a National Objective of an enterprise
(a) To remove inequality of opportunities and provide fair opportunity to all to work and to progress
(b) To make the job contents interesting and challenging
(c) To avoid profiteering and anti—social practices
(d) To maximize profits
Answer: A

Question. Direct relationship between Wage Rates and Supply of Labour means that —
(a) Increase in Wage Rates will decrease the Supply of Labour
(b) Decrease in Wage Rates will increase the Supply of Labour
(c) Increase in Wage Rates will increase the Supply of Labour
(d) Increase in Wage Rates will not affect the Supply of Labour at all
Answer: C

Question. As a Factor of Production, "Labour" is —
(a) Perishable
(b) Permanent
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: A

Question. Factors of Production are —
(a) Natural Resources
(b) Man Made Resources
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: C

Question. A 100% Consumption Economy —
(a) Cannot have any Capital Formation
(b) Will become static and cannot grow
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: C

Question. Which is not a characteristic of labour?
(a) Labour is not separable from labourer
(b) Labour is perishable
(c) Labour is not a mobile factor
(d) Labour is an active factor
Answer: C

Question. In Economics, Production Activity should involve —
(a) Creation of new matter
(b) Addition of value to existing matter
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: B

Question. Generally, Supply of Labour and Wage Rates are ......... related.
(a) Directly
(b) Inversely
(c) Equally
(d) Not related at all .
Answer: A

Question. All Wealth is Capital, but all Capital is not Wealth. This statement is —
(a) True
(b) False
(c) Partially True
(d) None of the above
Answer: B

Question. 1f a Resource is lying idle, it will constitute
(a) Wealth
(b) Capital
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: A

Question. The process of increase in the stock of real capital in a country is called —
(a) Stock Increase
(b) Capital Formation
(c) Increase in GDP
(d) Resource Allocation
Answer: B

Question. Services of a Maid Servant constitutes Labour, while Services of a Housewife does not. This statement is
(a) True
(b) Fal se
(c) Partially True
(d) None of the above
Answer:A

Question. is the person who combines the various factors of production in the right proportions, initiates the process of production and bears the risk involved in it.
(a) Capi tal ist
(b) Social ist
(c) Government
(d) Entrepreneur
Answer: D

Question. If a Resource is being used for generating further revenue, it will constitute —
(a) Wealth
(b) Capital
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: C

Question. What is the Average Total Cost in producing 20 units, if Fixed Cost is 5,000 and Variable Cost is ! 200?
(a) ! 25
(b) ! 26
(c) ! 25
(d) ! 25
Answer: B

Question. Long Run Average Cost Curves are broadly—
(a) U — shaped
(b) Inverted U — shaped
(c) V shaped
(d) L shaped
Answer: A

Question. A Firm's Average Fixed Cost is ! 20 at 6 units of output. What will it be at 4 units of output?
(a) Z 60
(b) Z 30
(c) ! 40
(d) ! 20
Answer: B

Question. A company produces 10 units of output and incurs Z 30 per unit of variable cost and Z 5 per unit of fixed cost. In this case total cost is:
(a) Z 300
(b) Z 35
(c) Z 305
(d) 350
Answer: D

Question. The period of time in which the Plant Capacity can be varied is known as —
(a) Short Period
(b) Market Period
(c) Long Period
(d) All of the above.
Answer: C

Question. Which is the other name given to the Long Run Average Cost Curve?
(a) Profit Curve
(b) Planning Curve
(c) Demand Curve
(d) Indifference Curve
Answer: B

Question. When LAC Curve is ........ , it will be tangent to the rising portions of the SAC Curves.
(a) Decreasing
(b) Increasing
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: B

Question. In the long—run, the Firm will decide on which SAC Curve it should operate to produce a given output, so that its —
(a) AC is minimum
(b) AC is maxmum
(c) MC is minimum
(d) MC is maximum
Answer: A

Question. The LAC Curve —
(a) Falls when the LMC Curve falls
(b) Rises when the LMC Curve rises
(c) Goes through the lowest point of the LMC Curve
(d) Falls when LMC < LAC and rises when LMC > LAC
Answer: D

Question. A Firm producing 7 units of output has an Average Total Cost of ! 150 and has to pay ! 350 to its Fixed Factors of Production whether it produces or not. How much of the Average Total Cost is made up of Variable Costs?
(a) ! 200
(b) ! 50
(c) 300
(d) ! 100
Answer: D

Question. Which one of the following is also known as Planning Curve?
(a) Long—Run Average Cost Curve
(b) Short—Run Average Cost Curve
(c) Average Variable Cost Curve
(d) Average Total Cost Curve
Answer: A

Question. In the long—run, the Firm will operate at the .................for any output level, by choosing the appropriate Plant Size.
(a) Optimum cost
(b) Minimum cost
(c) Maximum cost
(d) Nothing can be said
Answer: B

Question. When LAC Curve is rising, it will be tangent to the —
(a) Falling portions of the SAC Curves
(b) Rising portions of the SAC Curves
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: B

Question. Positively sloped (i.e. rising) part of long run Average Cost Curve is due to which of the following __________.
(a) Constant Returns to Scale
(b) Increasing Returns to Scale
(c) Diseconomies of Scale
(d) Economics of Scale
Answer: C

Question. Which one of the following is also known as Plant Curve?
(a) Long—Run Average Cost Curve
(b) Short—Run Average Cost Curve
(c) Average Variable Cost Curve
(d) Average Total Cost Curve
Answer: B

Question. When MC Curve intersects AC Curve, it means that —
(a) AC is minimum
(b) AC = MC
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: C

Question. LAC = Least Cost combination for an appropriate output level. This statement is —
(a) True
(b) False
(c) Partially True
(d) Nothing can be said
Answer: A

Question. Planning curve is related to which of the following
(a) Short-run average cost curve
(b) Long-run average cost curve
(c) Fixed cost curve
(d) Average variable cost curve
Answer: B

Question. LAC Curve is tangent to each of the infinite SAC Curves. This statement is —
(a) True
(b) Fal se
(c) Partially True
(d) Nothing can be said
Answer: A

Question. In the long—run, when there are infinite SAC Curves, the LAC Curve will be —
(a) Perpendicular to each SAC Curve
(b) Connecting the lowest points of each SAC Curve
(c) Smooth Curve, so as to be tangent to each of the SAC Curves
(d) All of the above
Answer: C

Question. A Firm's Average Total Cost is ! 300 at 5 units of output and 320 at 6 units of output. The Marginal Cost of producing the 6th unit is —
(a) ! 20
(b) ! 120
(c) ! 320
(d) ! 420
Answer: D

Question. When LAC Curve is declining, it will be tangent to the
(a) Falling portions of the SAC Curves
(b) Rising portions of the SAC Curves
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: A

Question. When LAC Curve is .. , it will be tangent to the falling portions of the SAC Curves.
(a) Decreasing
(b) Increasing Both (a) and (b)
(c) Neither (a) nor (b)
Answer: A

Question. For producing 100 units, Total Variable Cost is Z 500 and Total Fixed Cost is ! 1,000.Compute Average Cost.
(a) 10
(b) 15
(c) 5
(d) 20
Answer: B

Question. In the long—run, the Firm will try to select —
(a) Lowest point of every SAC
(b) SAC with the lowest cost for a particular level of output
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: B

Question. A Firm has a Variable Cost of 1000 at 5 units of output. If Fixed Costs are ! 400, what will be the Average Total Cost at 5 units of output?
(a) ! 280
(b) ! 60
(c) ! 120
(d) 1,400
Answer: A

Question. Which of the following statements concerning the Long—Run Average Cost Curve is false?
(a) It represents the least—cost input combination for producing each level of output
(b) It is derived from a series of Short—Run Average Cost Curves
(c) The Short—Run Cost Curve at the minimum point of the LAC Curve represents the least—cost Plant Size for all levels of output
(d) As output increases, the amount of capital employed by the Firm increases along the Curve.
Answer: C

Question. If the LAC Curve falls as output expands, this falls is due to —
(a) Economies of Scale
(b) Law of Diminishing Returns
(c) Diseconomies of Scale
(d) Any of the above
Answer: A

Question. LAC Curve is the connection of all minimum points of SAC Curves. This statement is —
(a) True
(b) False
(c) Partially True
(d) Nothing can be said
Answer: B

Use the following data to answer the following 11. questions 
cbse-class-12-economics-production-and-costs-worksheet

Question. MC for 2nd unit of Output is —
(a) Nil
(b) 90
(c) 80
(d) 70
Answer: C

Question. MC is minimum at units of Output.
(a) 3
(b) 4
(c) 5
(d) 6
Answer: B

Question. AC is minimum at units of Output.
(a) 4
(b) 5
(c) 6
(d) 7
Answer: C

Question. MC Curve will cut AC Curve at . units of Output.
(a) 4
(b) 5
(c) 6
(d) 7
Answer: C

Question. TFC at all levels of Output is —
(a) Nil
(b) 240
(c) 330
(d) 690
Answer: B

Question. AC for 3 units of Output is —
(a) 205
(b) 160
(c) 135
(d) 122
Answer: B

Question. MC for 3rd unit of Output is —
(a) Nil
(b) 90
(c) 80
(d) 70
Answer: D

Question. AC for 5 units of Output is —
(a) 205
(b) 160
(c) 135
(d) 122
Answer: D

Question. AFC for 3 units of Output is —
(a) 240
(b) 120
(c) 80
(d) 60
Answer: C

Question. MC for 5th unit of Output is —
(a) 90
(b) 80
(c) 70
(d) 60
Answer: C

Question. AC for 4 units of Output is —
(a) 205
(b) 160
(c) 135
(d) 122
Answer: C

Question. If the LAC Curve rises as output expands, this falls is due to —
(a) Economies of Scale
(b) Law of Diminishing Returns
(c) Diseconomies of Scale
(d) Any of the above
Answer: C

Question. The Average Total Cost of producing 50 units is Z 250 and Total Fixed Cost is Z 1,000. What is the Average Fixed Cost of producing 100 units?
(a) Z 10
(b) Z 30
(c) Z 20
(d) Z 5
Answer: A

Part A Microeconomics Chapter 02 Theory of Consumer Behaviour
CBSE Class 12 Economics Theory of Consumer Behaviour Worksheet
Part A Microeconomics Chapter 03 Production and Costs
CBSE Class 12 Economics Production and Costs Worksheet
Part B Macroeconomics Chapter 02 National Income Accounting
CBSE Class 12 Economics National Income Accounting Worksheet
Part B Macroeconomics Chapter 03 Money and Banking
CBSE Class 12 Economics Money And Banking Worksheet
Part B Macroeconomics Chapter 05 Government Budget and The Economy
CBSE Class 12 Economics Government Budget And The Economy Worksheet
Part B Macroeconomics Chapter 06 Open Economy Macroeconomics
CBSE Class 12 Economics Balance Of Payment Worksheet

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