CUET UG Economics Booster Test 2 - Product Metrics and Laws -

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CUET UG Economics Booster Test 2 - Product Metrics and Laws

⏱️ 30 Minutes

❓ 20 Questions

📌 Answers are locked once submitted — results and explanations appear at the end.

CUET UG Economics Booster Test 2 - Product Metrics and Laws

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QUESTION 1 OF 20

If capital is fixed at 4 units, and output is recorded for different values of labour as we move down the column, this schedule is specifically called the:

Answer Review

1 If capital is fixed at 4 units, and output is recorded for different values of labour as we move down the column, this schedule is specifically called the:

A Long run production schedule

B Total product of labour schedule

C Average fixed cost schedule

D Marginal product of capital schedule

💡 Short Explanation

�� Capital remains fixed while labour varies. �� Output is recorded for each level of labour. �� This forms the Total Product of Labour schedule.

✅ Correct Answer Explanation

When capital is held constant and the quantity of labour is increased, the resulting output at each labour level is recorded in a Total Product (TP) of Labour schedule. This schedule shows how total output changes as more units of labour are employed while other inputs remain fixed. Therefore, Option B is correct. Option A is incorrect because a long-run schedule allows all inputs to vary. Option C is incorrect because Average Fixed Cost is a cost concept, not a production schedule. Option D is incorrect because capital is fixed, so the schedule does not measure the marginal product of capital.

❓ Why Other Options Are Incorrect

�� Option A → In the long run, all factors of production are variable, whereas this schedule keeps capital fixed.
�� Option C → Average Fixed Cost belongs to cost analysis and has no relation to the production schedule.
�� Option D → Since labour varies and capital is fixed, the schedule represents Total Product of Labour, not Marginal Product of Capital.

🎯 Strategy

Used

Contextual/Tonal Matching

Application:

Identify which factor is fixed and which factor varies to determine the type of production schedule.

Final Logic:

Fixed Capital + Variable Labour = Total Product of Labour Schedule.

🧠 Memory Trick

Fixed K + Changing L = TP of Labour

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Total Product Schedule

2 Arrange the steps to identify the Variable Input Relationship from a production function table:
I. Keep one factor (e.g., capital) fixed at a specific unit.
II. Observe the corresponding output levels.
III. Increase the quantity of the other factor (e.g., labour) moving down the column.

A I, III, II

B III, II, I

C I, II, III

D II, I, III

💡 Short Explanation

�� Fix one factor first. �� Increase the variable factor. �� Observe the resulting output.

✅ Correct Answer Explanation

To study the relationship between a variable input and output, the following sequence is followed: 1. Keep one factor (capital) fixed (I). 2. Increase the quantity of the other factor (labour) (III). 3. Observe the corresponding changes in output (II). This procedure helps analyze Total Product, Average Product and Marginal Product. Therefore, the correct order is: I → III → II Hence, Option A is correct.

❓ Why Other Options Are Incorrect

�� Option B → Labour cannot be increased before deciding which factor is fixed.
�� Option C → Output is observed only after labour has been varied.
�� Option D → Output cannot be observed before fixing the production conditions.

🎯 Strategy

Used

Contextual/Tonal Matching

Application:

Arrange the production analysis steps according to the standard NCERT procedure.

Final Logic:

Fix One Input → Increase Other Input → Observe Output.

🧠 Memory Trick

Fix → Increase → Observe

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Total Product Schedule

3 The values in the Average Product of labour column are mathematically obtained by dividing Total Product (TP) by ________.

A Marginal Product

B Change in Labour

C Amount of Labour (L)

D Fixed Capital (K)

💡 Short Explanation

�� Average Product measures output per worker. �� It is calculated using Total Product and Labour. �� Labour is the variable input.

✅ Correct Answer Explanation

Average Product of Labour (APL) is calculated as: APL = Total Product (TP) ÷ Labour (L) It measures the average output produced by each unit of labour. Therefore, Option C is correct. Option A is incorrect because Marginal Product measures additional output. Option B is incorrect because Change in Labour is used in the Marginal Product formula. Option D is incorrect because fixed capital is not used in calculating Average Product.

❓ Why Other Options Are Incorrect

�� Option A → Marginal Product is a separate productivity measure and is not used to calculate Average Product.
�� Option B → Change in Labour (ΔL) is used in the Marginal Product formula, not Average Product.
�� Option D → Fixed capital does not appear in the Average Product formula.

🎯 Strategy

Used

Substitution

Application:

Recall the NCERT formula AP = TP ÷ L and substitute it into the options.

Final Logic:

Average Product = Total Product ÷ Labour.

🧠 Memory Trick

("Average = Divide")

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Average Product of Labour

4 Which of the following are true about the Average Product at any level of employment?
I. It is the average of all marginal products up to that level.
II. It is obtained by dividing change in TP by change in L.
III. It is referred to as average return to the variable input.

A I and II only

B I and III only

C II and III only

D I, II, and III

💡 Short Explanation

�� Average Product is the average output per unit of labour. �� It can be viewed as the average of all marginal products up to that employment level. �� It is also called the average return to the variable input.

✅ Correct Answer Explanation

Average Product (AP) is calculated as: AP = Total Product (TP) ÷ Labour (L) Therefore: Statement I is correct because AP represents the average productivity of all units of labour employed, which is equivalent to the average of the marginal products up to that level. Statement II is incorrect because ΔTP ÷ ΔL is the formula for Marginal Product (MP), not Average Product. Statement III is correct because NCERT refers to Average Product as the average return to the variable input. Hence, Option B (I and III only) is correct.

❓ Why Other Options Are Incorrect

�� Option A → Statement II is incorrect because it represents the formula for Marginal Product.
�� Option C → Statement II is incorrect, making this option wrong.
�� Option D → All three statements are not correct because Statement II is false.

🎯 Strategy

Used

Option Grouping

Application:

Evaluate each statement individually using the NCERT definitions of AP and MP.

Final Logic:

AP = TP ÷ L and Average Return; MP = ΔTP ÷ ΔL.

🧠 Memory Trick

MP = ΔTP ÷ ΔL

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Average Product (AP)

5 Assertion: MP is undefined at the zero level of input employment.
Reason: Inputs cannot take negative values, so marginal product is undefined at zero level of input employment.

A Both Assertion and Reason are true, and Reason is the correct explanation.

B Both are true, but Reason is not the explanation.

C Assertion is true, Reason is false.

D Assertion is false, Reason is true.

💡 Short Explanation

�� Marginal Product measures the change in output from an additional unit of input. �� At zero input, there is no previous level from which a change can be measured. �� Therefore, MP is undefined at zero employment.

✅ Correct Answer Explanation

The Assertion is true because Marginal Product (MP) measures the additional output resulting from an additional unit of the variable input. At zero units of labour, there is no preceding input level from which to calculate the change in output. Since inputs cannot take negative values, MP cannot be computed at zero employment. Thus, the Reason correctly explains the Assertion. Therefore, Option A is correct.

❓ Why Other Options Are Incorrect

�� Option B → The Reason directly explains why MP is undefined at zero employment.
�� Option C → The Reason is true according to NCERT.
�� Option D → Both the Assertion and the Reason are true.

🎯 Strategy

Used

Elimination

Application:

Evaluate the Assertion and the Reason separately, then determine whether the Reason explains the Assertion.

Final Logic:

No Negative Inputs → MP Undefined at Zero.

🧠 Memory Trick

Zero Labour = MP Undefined

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Marginal Product (MP)

6 Match the calculation components for the MP formula when L changes from 1 to 2, and TP changes from 10 to 24.

List I	List II
1. Change in TP	a. 1
2. Change in L	b. 14
3. Marginal Product (MP)	c. 14
4. MP Formula	d. ΔTP ÷ ΔL

A 1-a, 2-b, 3-c, 4-d

B 1-b, 2-a, 3-c, 4-d

C 1-a, 2-a, 3-d, 4-c

D 1-b, 2-b, 3-a, 4-d

💡 Short Explanation

�� Change in Total Product = 24 − 10 = 14. �� Change in Labour = 2 − 1 = 1. �� Marginal Product is calculated as ΔTP ÷ ΔL.

✅ Correct Answer Explanation

According to NCERT, Marginal Product (MP) = ΔTP ÷ ΔL Given: Labour changes from 1 to 2. Total Product changes from 10 to 24. 1 → b Change in Total Product ΔTP = 24 − 10 = 14 Therefore, 1 → b. 2 → a Change in Labour ΔL = 2 − 1 = 1 Therefore, 2 → a. 3 → c Marginal Product MP = ΔTP ÷ ΔL = 14 ÷ 1 = 14 Therefore, 3 → c. 4 → d The formula used to calculate Marginal Product is MP = ΔTP ÷ ΔL. Therefore, 4 → d. Thus, the correct matching is: 1 → b 2 → a 3 → c 4 → d Hence, Option B is correct.

❓ Why Other Options Are Incorrect

�� Option A → Incorrect because the values of ΔTP and ΔL are interchanged.
�� Option C → Incorrect because ΔTP is 14, not 1, and the MP formula is incorrectly matched.
�� Option D → Incorrect because the change in labour is 1, not 14, and MP is 14.

🎯 Strategy

Used: Substitution

Application:

Substitute the given values of Total Product and Labour into the MP formula and compute each quantity before matching.

Final Logic:

ΔTP = 14
ΔL = 1
MP = 14
Formula = ΔTP ÷ ΔL

🧠 Memory Trick

2 − 1 = 1

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Total Product, Marginal Product and Average Product Relationship

7 If the marginal product of the 1st unit is 10 and the 2nd unit is 14, what is the Total Product at 2 units of labour based on the summation rule?

A 4

B 10

C 14

D 24

💡 Short Explanation

�� Total Product equals the sum of Marginal Products. �� Add the MP of each unit of labour. �� TP = 10 + 14 = 24.

✅ Correct Answer Explanation

According to the summation rule, Total Product = Sum of Marginal Products Given: MP of the 1st unit = 10 MP of the 2nd unit = 14 Therefore, TP = 10 + 14 = 24 Hence, Option D is correct. Option A, B and C represent only partial values and do not equal the cumulative Total Product.

❓ Why Other Options Are Incorrect

�� Option A → 4 is not obtained from the given Marginal Products.
�� Option B → 10 is only the first Marginal Product, not Total Product.
�� Option C → 14 is only the second Marginal Product.

🎯 Strategy

Used

Substitution

Application:

Apply the TP summation rule directly to the given Marginal Products.

Final Logic:

TP = 10 + 14 = 24.

🧠 Memory Trick

TP = Σ MP

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Relationship between TP and MP

8 Match the TP growth rate to the state of MP.

List I	List II
1. TP increases by 10 then by 12	a. MP is positive but decreasing.
2. Rate at which TP increases	b. MP becomes zero.
3. TP increases at a diminishing rate	c. Shown by the Marginal Product
4. TP reaches its maximum	d. MP is increasing

A 1-d, 2-c, 3-a, 4-b

B 1-a, 2-b, 3-d, 4-c

C 1-a, 2-a, 3-b, 4-d

D 1-b, 2-b, 3-c, 4-a

💡 Short Explanation

�� Increasing additions to TP indicate a rising Marginal Product. �� Marginal Product measures the rate of increase in Total Product. �� When TP reaches its maximum, MP becomes zero.

✅ Correct Answer Explanation

According to NCERT, Marginal Product (MP) measures the change in Total Product (TP) resulting from employing one additional unit of the variable factor. 1 → d If TP first increases by 10 units and then by 12 units, the additional output contributed by successive units of labour is increasing. Therefore, MP is increasing. Hence, 1 → d. 2 → c The rate at which Total Product increases is measured by Marginal Product. Therefore, 2 → c. 3 → a When Total Product continues to increase but at a diminishing rate, Marginal Product remains positive but starts decreasing. Therefore, 3 → a. 4 → b Total Product reaches its maximum when Marginal Product becomes zero. Beyond this point, additional labour causes Total Product to decline. Therefore, 4 → b. Thus, the correct matching is: 1 → d 2 → c 3 → a 4 → b Hence, Option A is correct.

❓ Why Other Options Are Incorrect

�� Option B → Incorrect because increasing additions to TP indicate increasing MP, while the last two concepts are also mismatched.
�� Option C → Incorrect because TP increasing by larger increments does not merely indicate that MP measures TP growth; it specifically indicates that MP is increasing.
�� Option D → Incorrect because the rate of TP increase is measured by MP, not that both statements correspond to increasing MP.

🎯 Strategy

Used: Option Grouping

Application:

Relate each stage of Total Product with the corresponding behaviour of Marginal Product using the standard NCERT TP–MP relationship.

Final Logic:

Increasing TP additions → MP Increasing.
TP Growth Rate → MP.
TP Maximum → MP = 0.

🧠 Memory Trick

TP Maximum → MP = 0

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Relationship between Total Product (TP) and Marginal Product (MP)

9 The law of variable proportions states that the marginal product of a factor input initially rises with its employment level, but after reaching a certain level, it ________.

A Becomes constant

B Starts falling

C Becomes zero immediately

D Equals fixed cost

💡 Short Explanation

�� Marginal Product rises initially. �� After the optimum stage, it begins to decline. �� This is the essence of the Law of Variable Proportions.

✅ Correct Answer Explanation

The Law of Variable Proportions states that as additional units of a variable factor are employed with other factors fixed, Marginal Product initially increases because factor proportions improve. After a certain point, the fixed factor becomes crowded, causing Marginal Product to start falling. Therefore, Option B is correct. Option A is incorrect because MP does not remain constant. Option C is incorrect because MP does not become zero immediately after the optimum stage. Option D is incorrect because Marginal Product has no relationship with fixed cost.

❓ Why Other Options Are Incorrect

�� Option A → MP eventually declines rather than remaining constant.
�� Option C → MP declines gradually and does not become zero immediately.
�� Option D → Fixed cost is unrelated to Marginal Product.

🎯 Strategy

Used

Contextual/Tonal Matching

Application:

Recall the central principle of the Law of Variable Proportions.

Final Logic:

Initial Rise → Eventual Fall.

🧠 Memory Trick

Rise First, Fall Later

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Law of Variable Proportions

10 Select the correct conditions regarding employment level thresholds:
I. The first phase shows MP increasing.
II. The next phase shows MP falling.
III. Output falls to zero when MP starts falling.

A I and III only

B II and III only

C I and II only

D I, II, and III

💡 Short Explanation

�� MP rises initially. �� MP later begins to decline. �� Output does not become zero merely because MP starts falling.

✅ Correct Answer Explanation

Under the Law of Variable Proportions: Statement I is correct because Marginal Product initially increases as factor proportions improve. Statement II is correct because after a certain employment level, the fixed factor becomes crowded and Marginal Product starts falling. Statement III is incorrect because Total Product continues to increase as long as Marginal Product remains positive. Output does not fall to zero simply because MP starts declining. Therefore, Option C (I and II only) is correct.

❓ Why Other Options Are Incorrect

�� Option A → Statement II is also correct.
�� Option B → Statement III is incorrect.
�� Option D → All three statements are not correct because Statement III is false.

🎯 Strategy

Used

Option Grouping

Application:

Evaluate each statement independently using the stages of the Law of Variable Proportions.

Final Logic:

MP Falls ≠ Output Falls to Zero.

🧠 Memory Trick

MP Falls, TP Still Rises (Until MP = 0)

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Law of Variable Proportions

11 As we hold one factor fixed and keep increasing the other, the factor proportions ________.

A Become fixed

B Change

C Reach equilibrium

D Decline to zero

💡 Short Explanation

�� One factor remains fixed while the other increases. �� The ratio between the two inputs changes. �� This changing ratio is called changing factor proportions.

✅ Correct Answer Explanation

The Law of Variable Proportions studies production when one factor is fixed and the other factor is varied. As additional units of the variable factor are employed, the ratio (proportion) between the two inputs changes continuously. Therefore, Option B (Change) is correct. Option A is incorrect because the proportions do not remain fixed. Option C is incorrect because there is no concept of factor proportions "reaching equilibrium." Option D is incorrect because the proportions do not decline to zero.

❓ Why Other Options Are Incorrect

�� Option A → Factor proportions change because only one input is increased.
�� Option C → Production theory does not define factor proportions in terms of equilibrium.
�� Option D → The ratio changes but does not become zero.

🎯 Strategy

Used

Contextual/Tonal Matching

Application:

Recall the basic idea of the Law of Variable Proportions where one factor changes while another remains fixed.

Final Logic:

Fixed One Input + Increase Other Input = Changing Factor Proportions.

🧠 Memory Trick

Fixed One → Ratio Changes

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Factor Proportions

12 Arrange the sequence of events as factor proportions change:
I. Factor proportions become more suitable for production.
II. The production process becomes too crowded.
III. Marginal product increases initially.

A I, III, II

B III, I, II

C II, I, III

D I, II, III

💡 Short Explanation

�� Initially, factor proportions improve. �� Better proportions increase Marginal Product. �� Later, crowding causes productivity to decline.

✅ Correct Answer Explanation

As labour is added while capital remains fixed: Factor proportions first become more suitable for production (I). Due to this better utilization of the fixed factor, Marginal Product increases initially (III). After further additions of labour, the fixed factor becomes crowded, reducing efficiency (II). Thus, the correct sequence is: I → III → II Therefore, Option A is correct.

❓ Why Other Options Are Incorrect

�� Option B → Marginal Product increases because factor proportions first become more suitable.
�� Option C → Crowding occurs only after the stage of improving factor proportions.
�� Option D → Crowding occurs after the rise in Marginal Product, not immediately after improved proportions.

🎯 Strategy

Used

Contextual/Tonal Matching

Application:

Arrange the events according to the NCERT explanation of the Law of Variable Proportions.

Final Logic:

Better Proportions → Rising MP → Crowding.

🧠 Memory Trick

Suitable → Rising MP → Crowding

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Law of Variable Proportions

📄 Passage

"Suppose table 3.2 describes the output of a farmer who has 4 hectares of land, and can choose how much labour he wants to use. If he uses only 1 worker, he has too much land for the worker to cultivate alone. As he increases the number of workers, the amount of labour per unit land increases, and each worker adds proportionally more and more to the total output. Marginal product increases in this phase. When the fourth worker is hired, the land begins to get 'crowded'. Each worker now has insufficient land to work efficiently. So the output added by each additional worker is now proportionally less. The marginal product begins to fall."

According to the passage, resource underutilization is best described by which scenario?

A Hiring the fourth worker

B Having 1 worker on 4 hectares

C Having 4 workers on 4 hectares

D Marginal product falling

💡 Short Explanation

�� One worker cannot fully utilize four hectares. �� Land remains underutilized. �� This is the initial stage of production.

✅ Correct Answer Explanation

The passage clearly states that when there is only one worker on four hectares, there is too much land for that worker to cultivate. This means the fixed factor (land) is underutilized. Therefore, Option B is correct. Option A refers to the beginning of crowding. Option C represents a later stage where land becomes crowded. Option D is a consequence of crowding, not underutilization.

❓ Why Other Options Are Incorrect

�� Option A → Hiring the fourth worker represents the beginning of crowding rather than underutilization.
�� Option C → Four workers on four hectares indicate crowding, not unused resources.
�� Option D → Falling Marginal Product results from crowding, not from underutilization.

🎯 Strategy

Used

Contextual/Tonal Matching

Application:

Use the passage to identify the situation where land is not fully utilized.

Final Logic:

Too Much Land + Too Few Workers = Underutilization.

🧠 Memory Trick

1 Worker = Empty Land

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Law of Variable Proportions

📄 Passage

The efficiency loss from crowding is primarily indicated by:

A Total output becoming zero

B The marginal product beginning to fall

C Workers adding proportionally more to output

D Land size expanding

💡 Short Explanation

�� Crowding reduces worker efficiency. �� Additional workers contribute less output. �� Marginal Product starts declining.

✅ Correct Answer Explanation

According to the passage, after the fourth worker is employed, the land becomes crowded. Because each worker has less land available, every additional worker contributes less output than before, causing the Marginal Product to begin falling. Therefore, Option B is correct. Option A is incorrect because Total Product does not become zero. Option C describes the earlier stage before crowding. Option D is unrelated to the explanation.

❓ Why Other Options Are Incorrect

�� Option A → Total Product does not become zero when crowding begins.
�� Option C → Workers add proportionally more output only before crowding occurs.
�� Option D → Land size remains fixed throughout the analysis.

🎯 Strategy

Used

Contextual/Tonal Matching

Application:

Identify the exact indicator of efficiency loss mentioned in the passage.

Final Logic:

Crowding → Falling Marginal Product.

🧠 Memory Trick

Crowding = MP Falls

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Law of Variable Proportions

15 Assertion: As long as AP increases, MP must be greater than AP.
Reason: If MP is lower than AP, AP cannot rise.

A Both Assertion and Reason are true, and Reason is the correct explanation.

B Both are true, but Reason is not the correct explanation.

C Assertion is true, Reason is false.

D Assertion is false, Reason is true.

💡 Short Explanation

�� MP influences the movement of AP. �� AP rises only when MP exceeds AP. �� The Reason correctly explains the Assertion.

✅ Correct Answer Explanation

The relationship between Average Product (AP) and Marginal Product (MP) is one of the most important concepts in production theory. When MP > AP, the Average Product rises. When MP = AP, AP reaches its maximum. When MP < AP, AP falls. Therefore, the Assertion is true because AP continues to rise only when MP is greater than AP. The Reason is also true because if MP falls below AP, the average can no longer increase. Thus, the Reason correctly explains the Assertion. Hence, Option A is correct.

❓ Why Other Options Are Incorrect

�� Option B → The Reason directly explains the Assertion.
�� Option C → The Reason is true according to the AP–MP relationship.
�� Option D → Both the Assertion and the Reason are true.

🎯 Strategy

Used

Elimination

Application:

Evaluate both statements and verify whether the Reason explains the Assertion.

Final Logic:

MP Above AP → AP Rises.

🧠 Memory Trick

Below = Fall

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Relationship between Average Product and Marginal Product

16 Arrange the stages of AP and MP curve interaction from left to right on a typical firm's graph:
I. MP is greater than AP; AP is rising.
II. MP cuts AP from above at its maximum.
III. MP is less than AP; AP is falling.

A II, I, III

B I, II, III

C III, II, I

D I, III, II

💡 Short Explanation

�� Initially, MP is above AP. �� MP intersects AP at AP's maximum point. �� Afterwards, MP falls below AP and AP declines.

✅ Correct Answer Explanation

The relationship between Average Product (AP) and Marginal Product (MP) follows a definite sequence: Stage I: MP is greater than AP, so AP rises. Stage II: MP cuts the AP curve from above at the maximum point of AP. Stage III: MP becomes less than AP, causing AP to decline. Thus, the correct order is: I → II → III Therefore, Option B is correct.

❓ Why Other Options Are Incorrect

�� Option A → The intersection cannot occur before AP has been rising.
�� Option C → AP does not begin by falling.
�� Option D → MP must first intersect AP before AP starts falling.

🎯 Strategy

Used

Contextual/Tonal Matching

Application:

Recall the standard AP–MP relationship explained in NCERT.

Final Logic:

MP Above AP → MP = AP → MP Below AP.

🧠 Memory Trick

Above → Equal → Below

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Relationship between Average Product and Marginal Product

17 Match the curve morphology to its behaviour based on the Law of Variable Proportions.

List I	List II
1. MP curve initially	a. Rises
2. MP curve after a certain point	b. Falls
3. TP curve when MP is positive	c. Continues to increase, but eventually at a diminishing rate.
4. TP curve when MP becomes zero	d. Reaches its maximum level.

A 1-b, 2-b, 3-c, 4-d

B 1-b, 2-a, 3-d, 4-c

C 1-a, 2-a, 3-c, 4-d

D 1-a, 2-b, 3-c, 4-d

💡 Short Explanation

�� Marginal Product initially rises due to better utilization of the fixed factor. �� After a certain stage, Marginal Product begins to fall because of diminishing returns. �� Total Product continues to increase until Marginal Product becomes zero.

✅ Correct Answer Explanation

According to the Law of Variable Proportions in NCERT, the behaviour of the TP and MP curves depends on changes in the marginal product of the variable factor. 1 → a Initially, as more units of the variable factor are employed, the fixed factor is utilized more efficiently. Consequently, the Marginal Product (MP) rises. Therefore, 1 → a. 2 → b After a certain level of employment, the fixed factor becomes crowded. As a result, the Marginal Product begins to fall because of the Law of Diminishing Marginal Returns. Therefore, 2 → b. 3 → c As long as Marginal Product remains positive, Total Product continues to increase. However, once MP starts declining, TP increases at a diminishing rate. Therefore, 3 → c. 4 → d When Marginal Product becomes zero, Total Product reaches its maximum level. Therefore, 4 → d. Thus, the correct matching is: 1 → a 2 → b 3 → c 4 → d Hence, Option D is correct.

❓ Why Other Options Are Incorrect

�� Option A → Incorrect because the MP curve does not begin by falling.
�� Option B → Incorrect because the MP curve initially rises, and the TP-related concepts are incorrectly matched.
�� Option C → Incorrect because the MP curve does not continue rising indefinitely; it eventually falls due to diminishing marginal returns.

🎯 Strategy

Used: Option Grouping

Application:

Recall the NCERT behaviour of the TP and MP curves under the Law of Variable Proportions and match each stage with its corresponding characteristic.

Final Logic:

MP Initially → Rises.
MP Later → Falls.
MP Positive → TP Increases.
MP = 0 → TP Maximum.

🧠 Memory Trick

MP = 0 → TP Maximum

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Law of Variable Proportions; Relationship between Total Product (TP) and Marginal Product (MP)

18 In the input-output plane, the total product curve is a ________ sloped curve because an increase in the input amount results in an increase in output.

A Negatively

B Positively

C Horizontally

D Vertically

💡 Short Explanation

�� Labour is measured on the X-axis. �� Output is measured on the Y-axis. �� Increasing labour generally increases Total Product.

✅ Correct Answer Explanation

The Total Product (TP) curve shows the relationship between the quantity of the variable input and total output. As more units of labour are employed, Total Product generally increases (at least until the later stages), giving the TP curve a positive slope. Therefore, Option B is correct. Option A is incorrect because TP does not normally slope downward. Option C is incorrect because output changes with labour. Option D is incorrect because the TP curve is not vertical.

❓ Why Other Options Are Incorrect

�� Option A → A negative slope would imply that increasing labour always reduces output, which is incorrect.
�� Option C → A horizontal line would imply output never changes.
�� Option D → A vertical line would imply labour never changes.

🎯 Strategy

Used

Contextual/Tonal Matching

Application:

Recall the graphical representation of the Total Product curve.

Final Logic:

More Labour → More Output → Positive Slope.

🧠 Memory Trick

TP Climbs Up

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Total Product Curve

19 Match the term to its alternative name.

List I	List II
1. Total Product	a. Average Returns
2. Average Product	b. Total Physical Product
3. Marginal Product	c. Marginal Returns
4. Returns to a Variable Input	d. Change in Total Product due to one additional unit of the variable input.

A 1-a, 2-b, 3-c, 4-d

B 1-b, 2-a, 3-d, 4-c

C 1-b, 2-b, 3-a, 4-d

D 1-a, 2-a, 3-c, 4-b

💡 Short Explanation

�� Total Product is also known as Total Physical Product. �� Average Product is also called Average Returns. �� Marginal Product measures the additional output produced by an additional unit of the variable input.

✅ Correct Answer Explanation

According to NCERT, the following alternative names are commonly used in production theory. 1 → b Total Product (TP) is also known as Total Physical Product (TPP), representing the total output produced by all units of the variable factor. Therefore, 1 → b. 2 → a Average Product (AP) is also called Average Returns to the Variable Input because it represents the output produced per unit of the variable factor. Therefore, 2 → a. 3 → d Marginal Product (MP) is the change in Total Product resulting from employing one additional unit of the variable input. Therefore, 3 → d. 4 → c Returns to a Variable Input are also referred to as Marginal Returns because they describe how output changes as additional units of the variable factor are employed while keeping other factors fixed. Therefore, 4 → c. Thus, the correct matching is: 1 → b 2 → a 3 → d 4 → c Hence, Option B is correct.

❓ Why Other Options Are Incorrect

�� Option A → Incorrect because the alternative names of Total Product and Average Product are interchanged.
�� Option C → Incorrect because Average Product is not called Total Physical Product, and Marginal Product is incorrectly matched.
�� Option D → Incorrect because Total Product is not called Average Returns, and the remaining concepts are also incorrectly matched.

🎯 Strategy

Used: Option Grouping

Application:

Recall the standard NCERT terminology used for Total Product, Average Product, Marginal Product, and Returns to a Variable Input, then match each concept accordingly.

Final Logic:

TP → Total Physical Product.
AP → Average Returns.
MP → Additional Output.
Returns to Variable Input → Marginal Returns.

🧠 Memory Trick

MP → More Product

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Total Product, Average Product, Marginal Product and Returns to a Variable Input

20 Which of the following statements correctly describe Returns to Variable Input concepts?
I. Average returns refer to Average Product.
II. Marginal returns refer to Marginal Product.
III. Total physical product is the sum of average returns.

A I and III only

B II and III only

C I and II only

D I, II, and III

💡 Short Explanation

�� Average Returns = Average Product. �� Marginal Returns = Marginal Product. �� Total Physical Product is Total Product, not the sum of Average Returns.

✅ Correct Answer Explanation

Statement I is correct because Average Returns is another name for Average Product (AP). Statement II is correct because Marginal Returns refers to Marginal Product (MP). Statement III is incorrect because Total Physical Product (TPP) is another name for Total Product (TP). It is not obtained by summing Average Returns. Instead, Total Product is the cumulative sum of Marginal Products, not Average Products. Therefore, the correct answer is Option C (I and II only).

❓ Why Other Options Are Incorrect

�� Option A → Statement II is also correct.
�� Option B → Statement III is incorrect because TPP is not the sum of Average Returns.
�� Option D → All three statements are not correct because Statement III is false.

🎯 Strategy

Used

Option Grouping

Application:

Evaluate each statement individually using NCERT terminology.

Final Logic:

Average Returns = AP; Marginal Returns = MP; TPP = TP.

🧠 Memory Trick

TP = Total Physical Product

📚 Class XI – Introductory Microeconomics – Chapter: Production and Costs – Topic: Returns to Variable Input

CUET UG Economics Booster Test 2 - Product Metrics and Laws

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