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AHSEC Class 11 Economics Chapter 3 Solution 2026 | Class 11 Economics Question Answer | Lesson 3 HS 1st Year Economics Question Answer | English Medium|

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AHSEC Class 11 Economics Chapter 3 Solution 2026 | Class 11 Economics Question Answer | Lesson 3 HS 1st Year Economics Question Answer | English Medium|

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&nbsp;Chapter 3

PRODUCTION AND COSTS

1. What determines the amount of profit a firm produces?

(a)On income

(b)On expenditure

(c) On market prices and cost of production

Answer: (c) On market prices and cost of production

2. Spending money to acquire the products

(a)&nbsp;is the cost of production

(b)&nbsp;is called the product

(c)&nbsp;None of the above Answer:&nbsp;&nbsp;(a)Cost of production 3. What is it called when a producer combines components to make production possible?

(a)&nbsp;The profit process

(b)&nbsp;Production process

(c)&nbsp;None of the above Answer:&nbsp;&nbsp;(b)Production process 4. What is the relationship between the output produced by an organization and the components used for it?

(a)&nbsp;Producer's profit

(b)&nbsp;is called the product function (c) Consumers

Answer:&nbsp;&nbsp;(b)The function of the product 5. What is the money spent to acquire the product?

(a)&nbsp;Production income

(b)&nbsp;Production costs

(c)&nbsp;None of the above Answer:&nbsp;&nbsp;(b)Cost of production 6. For what purpose does a firm sell its products in the market?

(a)&nbsp;For food acquisition

(b)&nbsp;Due to scarcity

(c)&nbsp;for the purpose of raising revenue Answer:&nbsp;&nbsp;(c)For the purpose of collecting revenue 7. How does an organization make a profit after excluding expenditure? (a)&nbsp;By collection of revenue (b)&nbsp;by revenue development (c)&nbsp;None of the above Answer:&nbsp;&nbsp;(a)By collecting revenue 8. What is the relationship between the output produced by the firm and the inputs used for it?

(a)&nbsp;It is called a union

(b)&nbsp;is called a function

(c)&nbsp;None of the above Answer:&nbsp;&nbsp;(b)Function 9. What does the function dictate?

(a)&nbsp;dictates the maximum quantity produced

(b)&nbsp;Orders fewer ingredients

(c)&nbsp;None of the above Answer:&nbsp;&nbsp;(a)Directs the maximum quantity produced 10. How can the maximum generated level of increment of a different component joint be obtained?

(a)&nbsp;If technology improves

(b)&nbsp;Decline in technology

(c)&nbsp;None of the above Answer:&nbsp;&nbsp;(a)With the advancement of technology 11. What is defined for a particular technology?

(a)&nbsp;Definition of yield matching

(b)&nbsp;Definition of production function

(c)&nbsp;None of the above Answer:&nbsp;&nbsp;(b)Definition of production function 12. What are the components used in a manufacturing process?

(a)&nbsp;Production income

(b)&nbsp;Cost of production

(c)&nbsp;Components of production Answer:&nbsp;&nbsp;(c)Components of production 13. What might a firm need to produce goods?

(a)&nbsp;Different definitions

(b)&nbsp;of different components

(c)&nbsp;None of the above Answer:&nbsp;&nbsp;(b)of different components 14. Who tells us the maximum amount produced by a joint?&nbsp; &nbsp;

(a)&nbsp;Production analysis

(b)&nbsp;The production function (c)&nbsp;None of the above Answer:&nbsp;&nbsp;(b)The production function 15. What is a steady state product? (a)&nbsp;Positive product (b)&nbsp;Fixed component (c)&nbsp;None of the above Answer:&nbsp;&nbsp;(b)Fixed components 16. What is the factor that changes an organization?

(a)&nbsp;Unstable component

(b)&nbsp;Variable components (c)None of the above

Answer:&nbsp;&nbsp;(b)Variable components 17. In the short run, an organization will change all components -

(a)&nbsp;They may

(b)&nbsp;Cannot (c)&nbsp;It is required Answer:&nbsp;&nbsp;(b)Not possible 18. To change the quantity produced, the firm will change the components of the other-

(a)&nbsp;You can

(b)&nbsp;Not possible

(c)&nbsp;shall be required Answer:&nbsp;&nbsp;(a)You can 19. Sometimes the total return of variable components or total material -

(a)&nbsp;is called definition

(b)&nbsp;is called component

(c)&nbsp;None of the above Answer:&nbsp;&nbsp;(b)is called a component 20. What is another concept related to the law of declining production?

(a)&nbsp;Component Rules(b) Variable production rule (c) None of the above

Answer:&nbsp;&nbsp;(b) Variable production rule

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