Theory of Production and CostPYQ - Nov 2019Question 44 of 20
All Questions

Which of the following is considered production in Economics?

Options

ATilling of soil
BSinging a song before friends
CPreventing a child from falling into a manhole on the road
DPainting a picture for pleasure
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Correct Answer

✅ Option a — Tilling of soil

All Options:

  • ATilling of soil
  • BSinging a song before friends
  • CPreventing a child from falling into a manhole on the road
  • DPainting a picture for pleasure

About This Chapter: Theory of Production and Cost

Paper

Paper 4: Business Economics

Weightage

10%

Key Topics

Function, Cost Concepts (Short/Long Run)

This chapter explores how firms produce goods and services. It covers Production Functions, the Laws of Returns (Increasing, Constant, Diminishing), and all cost concepts including Total Cost, Average Cost, Marginal Cost, Fixed Cost, and Variable Cost. Understanding why the AC and MC curves are U-shaped is crucial for exam success.

View Official ICAI Syllabus

Exam Strategy Tip

The relationship between MC and AC curves is a favorite examiner topic. Remember: MC cuts AC at its minimum point. Also focus on the difference between Short Run and Long Run cost curves.

Related Comparison Tables

Fixed Cost vs Variable Cost: Cost Concepts

More Questions from Theory of Production and Cost

Production is a function of:

Law of variable proportion is valid when:

Which of the following is not a characteristic of land?

External economies of scale are obtained by:

$The law of returns to scale is a _____ concept.$

Opportunity cost is:

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