CHAPTER 3 ( UNIT 1)

Question 1

ZAMEEN KI DEMAND

Answer 1

IS PERFECTLY INELASTIC

Question 2

ACTIVE FACTOR
PASSIVE FACTOR

Answer 2

LABOUR ( JO KAAM KARTA HAI )
LAND ( JO KAAM NAHI KARTA HAI )

Question 3

FIXED CAPITAL

Answer 3

IS DURABLE NATURE CAPITAL
Fixed capital ka matlab hai wo paisa ya resources jo kisi business mein aise cheezon ko kharidne mein lagta hai jo lambe samay tak use hoti hain, aur roz-roz nahi kharidi jaati.

EX- MACHINERY, FACTORY ETC

Question 4

CIRCULATING CAPITAL

Answer 4

Circulating capital ka matlab hai wo paisa ya saman jo business mein baar-baar use hota hai aur khatam ho jaata hai, isliye usse baar-baar kharidna padta hai.

Raw Material., FUEL
Electricity – Roz lagti hai, aur monthly bill dena padta hai.
Wages & Salary – Workers ko roz/mihne ke hisaab se deni padti hai.

Question 5

REAL ( TANGIBLE) CAPITAL
WHICH CAN BE PERCEIVED BY SENSES

Answer 5

Real Tangible Capital wo physical (haath se chhoo sakne wali) cheezein hoti hain jo production mein kaam aati hain. Ye wo cheezein hoti hain jo business ya factory mein istemal hoti hain aur jinhe aap dekh bhi sakte ho, chhoo bhi sakte ho
EX- MACHINERY,PLANTS ETC.

Question 6

HUMAN CAPITAL

Answer 6

REFERS TO HUMAN SKILLS AND ABILITY
EXPERTISE AND TALENT

Question 7

INTANGIBLE ( CANNOT BE PERCEIVED BY SENSES)

Answer 7

COPY RIGHTS, PATENTS, GOODWILL

Question 8

INDIVDUAL CAPITAL
SOCIAL CAPITAL

Answer 8

PERSONAL EK BANDE KI PROPERTY
SOCIAL CAPITAL IS WHAT IS BELONGS TO THE SOCIETY ( ROADS ,BRIDGES ETC)

Question 8

MOST IMPORTANT FUNCTION OF THE ENTREPRENEUR

Answer 8

INNOVATIONA

Question 8

INNOVATION

Answer 8

PROF JOSEPH SCHUMPETER

Question 9

LONG RUN

Answer 9

WHEN ALL FACTORS OF PRODUCTION OR INPUTS ARE VARIABLE ( that is changeable )

Question 10

SHORT RUN

Answer 10

WHEN ATLEAST ONE OF THE FACTORS OF PRODUCTION IS FIXED ( that is not changeable )

Question 11

Ek factory ne naye workers hire kiye but machines nahi badli — ye short run hai ya long run?

Answer 11

Short run, kyunki machines fixed hain.

Question 12

PRODUCTION FUNCTION

Answer 12

TECHNICAL RELATIONSHIP BETWEEN INPUTS AND OUTPUTS

Question 13

CONSTANT RETURN TO SCALE

Answer 13

LINEAR HOMOGENOUS RETURN PRODUCTION FUNCTION

Question 14

COBB-DOUGLUS KA PRODUCTION FUNCTION KISPE DEPENDED THA

Answer 14

THE WHOLE OF MANUFACTURING IN THE UNITED STATES

Question 15

LONG RUN CAN BE CALLED AS

Answer 15

PLANNING HORIZON

Question 16

LONG RUN MEI BHI KOI CHEEZ FIXED HO SAKTI HAI
( JAB CHANGE KREGA TO EK DIN KE LIYE BHI TO WO CHEEZ FIXED HAI)

Answer 16

OPERATION KRTE HUE AAP HAMESHA
SHORT RUN MEI HI HOTE HO
PLANNING AAP HAMESHA
LONG RUN KI KARTE HO

Question 17

MP CURVE CUTS AP CURVE AT ITS

Answer 17

MAXIMUM

Question 18

ISOQUANT

Answer 18

👉 Toh Isoquant curve ek aisi line hoti hai jismein output same rehta hai, bas input (jaise labour aur capital) alag-alag combination mein use kiye jaate hain.

Question 19

ISOCOST

Answer 19

👉 Toh Isoquant curve ek aisi line hoti hai jismein output same rehta hai, bas input (jaise labour aur capital) alag-alag combination mein use kiye jaate hain.

Question 20

PRODUCTION OPTIMIZATION OR PRODUCERS EQULIBRIUM

( THE PRODUCER WANTS TO PRODUCE AT LEAST POSSIBLE COST)

( YAHAPE SLOPE OF
ISOQUANT= SLOPE OF ISOCOST)

Answer 20

👉 Is point par output maximum hota hai ya cost minimum hoti hai — jitna paisa hai usme best combination mil jata hai labour aur capital ka.
🔹 Conditions for Producer’s Equilibrium (Asaan bhaasha mein)
Producer equilibrium tab hota hai jab:
Isoquant Curve (same output wali line)
Isocost Line (same budget wali line)
💥 Ek doosre ko touch karti hain tangent ki tarah (sirf ek point par milti hain).
✅ That point = Producer’s Equilibrium!