Match List-I with List-II List-

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Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

Match List-I with List-II

List-l	List-II
(A) A proportional increase in all inputs results in an increase in output by a smaller proportion	(I) Constant returns to scale
(B) A proportional increase in all inputs results in an increase in output by a larger proportion	(II) Law of variable proportions
(C) A proportional increase in all inputs results in an increase in output by the same proportion	(III) Decreasing Returns to Scale
(D) Factor proportions change as long as one factor is held constant and the other factors increases	(IV) Increasing Returns to Scale

Choose the correct answer from the options given below:

Options:

(A)-(I), (B)-(II), (C)-(III), (D)-(IV)

(A)-(I), (B)-(III), (C)-(II), (D)-(IV)

(A)-(I), (B)-(II), (C)-(IV), (D)-(III)

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Correct Answer:

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Explanation:

The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

List-l	List-II
(A) A proportional increase in all inputs results in an increase in output by a smaller proportion	(III) Decreasing Returns to Scale
(B) A proportional increase in all inputs results in an increase in output by a larger proportion	(IV) Increasing Returns to Scale
(C) A proportional increase in all inputs results in an increase in output by the same proportion	(I) Constant returns to scale
(D) Factor proportions change as long as one factor is held constant and the other factors increases	(II) Law of variable proportions