This quiz works best with JavaScript enabled. Home > Agriculture > Economics > Production > Production Economics – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Total cost of producing 35 t-shirts is £70. Average cost per t - shirt is: A) £4. B) £2. C) £70. D) £0.5. Show Answer Correct Answer: B) £2. 2. What factor of production is a tractor? A) Land. B) Labor. C) Capital. D) None of above. Show Answer Correct Answer: C) Capital. 3. A doctor attending a conference focused on new methods of treatment for heart disease would be an example of ..... A) A market failure. B) An increase labor. C) An increase in human capital. D) A decrease in labor. Show Answer Correct Answer: C) An increase in human capital. 4. The term, "land" means: A) The natural resources used to produce goods or services. B) Work the people do to produce goods and services. C) Goods not created for their own use, but to make other goods/services. D) Person who organizes the factors of production to produce goods/services; business owners. Show Answer Correct Answer: A) The natural resources used to produce goods or services. 5. A person who makes goods or provides a service A) Consumer. B) Service producer. C) Goods. D) Producer. Show Answer Correct Answer: D) Producer. 6. The people who work in both public and private sector are called: A) Land. B) Labour. C) Capital. D) Entreprenuership. Show Answer Correct Answer: B) Labour. 7. What is opportunity cost? A) A graph that shows how much an economy can produce between 2 goods. B) How much money something is. C) The opportunity one has to give up in order to gain something else. D) Land, labor, capital, entrepreneurs. Show Answer Correct Answer: C) The opportunity one has to give up in order to gain something else. 8. Which of the following are factors of production? A) Scarcity and shortages. B) Capital and land. C) Technology and productivity. D) Economics and business decisions. Show Answer Correct Answer: B) Capital and land. 9. Which is NOT a factor of production? A) Land. B) Money. C) A bulldozer. D) A special skill. Show Answer Correct Answer: B) Money. 10. A truck driver is an example of which Factor of Production? A) Labor. B) Land. C) Entrepreneurship. D) Capital. Show Answer Correct Answer: A) Labor. 11. What is the fundamental problem of every society? A) Labor costs. B) Economic interdependence. C) Scarcity. D) Market fluctuation. Show Answer Correct Answer: C) Scarcity. 12. Owning your own business is an example of ..... A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: D) Entrepreneurship. 13. You crave Tacos, Salad, or Chicken Strips for lunch. You choose to have Tacos. What is the opportunity cost of your lunch decision? A) Tacos. B) Salad and Chicken Strips. C) Salad and Tacos. D) Chicken Strips only. Show Answer Correct Answer: B) Salad and Chicken Strips. 14. Which of these is an example of land as a factor of production? A) Robotic welder. B) Water. C) Tractor. D) Machinist. Show Answer Correct Answer: B) Water. 15. Which term means "making decisions based on what you believe is the best combination of costs and benefits"? A) Budgeting. B) Cutting back. C) Economizing. D) Motivating. Show Answer Correct Answer: C) Economizing. 16. Which of these is NOT one of the 4 factors of production? A) Labor. B) Land. C) Entrepreneurship. D) Work Skills. Show Answer Correct Answer: D) Work Skills. 17. Reena makes a living by selling paintings of the town in which she lives. She sells them in an open-air market once a week. In order to be able to sell more pictures in a week she decides to buy a studio, pay someone to help in the studio and try to increase demand by advertising in the local paper. Which factors of production were changed? A) Capital only. B) Labour and land. C) Labour and capital. D) Labour only. Show Answer Correct Answer: C) Labour and capital. 18. Your friend and you decide to open a snow-cone stand. The stand and the snow cone machine are examples of which factor of production? A) Entrepreneurship. B) Capital Resources. C) Natural Resources. D) Labor Resources. Show Answer Correct Answer: B) Capital Resources. 19. ..... is workers and their abilities, talents, training, skills, and knowledge used to produce goods or services A) Natural resource. B) Human resource. C) Production. D) Capital resource. Show Answer Correct Answer: B) Human resource. 20. Land, labor, capital and entrepreneurship are the A) Basis of employment. B) Results of production. C) Factors of production. D) Results of supply and demand. Show Answer Correct Answer: C) Factors of production. 21. Which factor of production might include calculators for office work or tractors for a farming business? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 22. Things must remain assumed when looking at production possibilities. 1. no technological advances and 2 ..... A) All resources are being used and utilized efficiently. B) There is only one assumption. C) The boss must stay the same. D) All of the above. Show Answer Correct Answer: A) All resources are being used and utilized efficiently. 23. A group of farmers form a partnership. They buy more machinery which they share in the production of cereals. What is a benefit of using more machinery? A) It encourages more labour-intensive methods. B) It eliminates the need to train labour. C) It increases the productivity of each farmer. D) It reduces total capital costs of production. Show Answer Correct Answer: C) It increases the productivity of each farmer. 24. What identifies a finite resource? A) The resource does not renew itself. B) The supply of the resource is greater than demand. C) There is no opportunity cost for the resource. D) There is unlimited supply of the resource. Show Answer Correct Answer: A) The resource does not renew itself. 25. The difference between a good and a service is that: A) Goods are available in unlimited quantities and services are not. B) Services are available in unlimited quantities and goods are not. C) Goods are tangible and services are not. D) Goods help satisfy unlimited wants and services do not. Show Answer Correct Answer: C) Goods are tangible and services are not. 26. Hospital services are provided by the government and paid for through taxation. People cannot always get the treatment they require because of long waiting lists. Of what is this an example? A) Scarcity. B) External cost. C) Perfectly inelastic supply. D) Market system. Show Answer Correct Answer: A) Scarcity. 27. Which of the following is the best definition of economies of scale? A) Costs fall as output increases. B) Costs per unit fall as the firm expands. C) Average costs rise as the firm expands. D) Fixed costs fall as output increases. Show Answer Correct Answer: B) Costs per unit fall as the firm expands. 28. How should a Muslim man spend his money? A) He makes savings as gold and other jewels. B) He makes a demonstration for consumption. C) He spends all consumption to his needs without limit. D) He spends at first for his consumption to satisfy his needs. Show Answer Correct Answer: D) He spends at first for his consumption to satisfy his needs. 29. An example of scarcity. A) Shoes in footlocker. B) Air in Georgia. C) Water in California. D) Water in the Ocean. Show Answer Correct Answer: C) Water in California. 30. Which of the following is NOT used to calculate Net National Product (NNP)? A) Depreciation. B) GNP. C) Foreign manufacturers. D) Exports. Show Answer Correct Answer: C) Foreign manufacturers. ← PreviousNext →Related QuizzesEconomics QuizzesAgriculture QuizzesProduction Economics Quiz 1Production Economics Quiz 2Production Economics Quiz 3Production Economics Quiz 4Production Economics Quiz 5Production Economics Quiz 6Production Economics Quiz 7Production Economics Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books