This quiz works best with JavaScript enabled. Home > Agriculture > Economics > Production > Production Economics – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A period during which the amounts of all inputs can be changed is ..... A) The long run. B) Returns to scale. C) Time period. D) The short run. Show Answer Correct Answer: A) The long run. 2. Scenario:There is little competition among society because of proximity to others selling the same good.Which economic system has this stated advantage? A) Command. B) Market. C) Mixed. D) Traditional. Show Answer Correct Answer: D) Traditional. 3. Entrepreneurs are ..... A) People with all their efforts and abilities. B) Individuals who start a new business or bring a product to market. C) The "gifts of nature" or natural resources not created by human effort. D) The tools, equipment, and factories used in production of goods and services. Show Answer Correct Answer: B) Individuals who start a new business or bring a product to market. 4. The law of diminishing returns suggest that if a pizza shop hires one more cook, the marginal product of labor for the pizza shop will A) Increase at a decreasing rate. B) Not change. C) Decrease. D) Increase at an increasing rate. Show Answer Correct Answer: C) Decrease. 5. What do points outside of the PPF indicate? A) Unattainable combinations of goods. B) Ideal combinations of goods. C) Inefficient combinations of goods. D) None of above. Show Answer Correct Answer: A) Unattainable combinations of goods. 6. P x Q=?What is this the equation for? A) Total Revenue. B) Total Output Price. C) Total Cost. D) Total Production. Show Answer Correct Answer: A) Total Revenue. 7. Choose the effects of consumption on production summarized by Siddiqui. A) More resources would be allocated in the quantity of luxury goods demand. B) Increase the supply of labour. C) More resources would be allocated to the primary comforts of life. D) Fewer resources would be allocated for prohibited goods and services. Show Answer Correct Answer: C) More resources would be allocated to the primary comforts of life. 8. The equipment of the coffee shop to produce cups of coffee, are what kind of goods or products? A) Either consumer goods or capital goods. B) Economic goods. C) Consumer goods. D) Capital goods. Show Answer Correct Answer: D) Capital goods. 9. Which of the following best describes wants? A) Limited and ever changing. B) Unlimited and ever changing. C) Limited and never changes. D) Unlimited and never changes. Show Answer Correct Answer: B) Unlimited and ever changing. 10. If variable costs are £6 per unit, then total variable costs of producing 7, 000 units will be: A) £7, 000. B) £42, 000. C) £70, 000. D) £2, 100. Show Answer Correct Answer: B) £42, 000. 11. What can cause a production possibilities curve to move to the right? A) Thousands of people move out of the country. B) An epidemic kills thousands of young men and women. C) A new invention lowers the cost of production. D) The population is growing increasingly old. Show Answer Correct Answer: C) A new invention lowers the cost of production. 12. The term, "entrepreneurship" means: A) Person who organizes the factors of production to produce goods/services; business owners. B) Goods not created for their own use, but to make other goods/services. C) Work the people do to produce goods and services. D) The natural resources used to produce goods or services. Show Answer Correct Answer: A) Person who organizes the factors of production to produce goods/services; business owners. 13. A farm is buying tractors to help increase production. Which factor of production are they investing in? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 14. Which is an example of an economic shortage? A) A toy store without dolls. B) A farmer without enough water for crops. C) Too many jobs available. D) Too much bread on the store shelves. Show Answer Correct Answer: A) A toy store without dolls. 15. Things you buy and use A) Producer. B) Services. C) Goods. D) None of above. Show Answer Correct Answer: C) Goods. 16. The skills of people who are willing to invest time and money to run a buainess A) Labor. B) Land. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: D) Entrepreneurship. 17. Which of the following is not an example of land? A) Grass. B) Baker. C) Sunshine. D) Giraffe. Show Answer Correct Answer: B) Baker. 18. The analyses of the correlation of costs, sales and profit to production and sales volume is known as A) The contribution margin. B) Variable costs. C) Break even analysis. D) Linearity between production and sales. Show Answer Correct Answer: C) Break even analysis. 19. Market activities involve production for the purpose of A) Exchange. B) Earning income. C) Earning profit. D) All the above. Show Answer Correct Answer: D) All the above. 20. The BEST explanation of why there will always be scarcity is because A) People and their tools are inefficient. B) Natural disasters created by frequent shortages. C) Governments create scarcity to keep people wanting more. D) While peoples' wants are unlimited, resources are limited. Show Answer Correct Answer: D) While peoples' wants are unlimited, resources are limited. 21. Production possibilities curve in Islamic economic shows those in underdeveloped countries, the production of ..... A) Luxury and necessity good is balanced. B) Luxury goods increased and necessity good increased. C) Luxury goods decreased and necessity good increased. D) Luxury goods increased and necessity good decreased. Show Answer Correct Answer: C) Luxury goods decreased and necessity good increased. 22. What influences productivity, economic growth, and future standards of living? A) Government Regulations. B) Public goods and services. C) Factories, machinery, technology, and education. D) Income, full employment, and market failures. Show Answer Correct Answer: C) Factories, machinery, technology, and education. 23. Which of the following is NOT a reason for economies of scale to exist? A) Large firms can buy in bulk. B) Large firms often have poor communication, which slows down decision making. C) Large firms can find cheaper sources of finance. D) Large firms can afford to employ specialist managers. Show Answer Correct Answer: B) Large firms often have poor communication, which slows down decision making. 24. Which change will make a manufacturing company replace machines with labour to maintain the most efficient combination of factors of production? A) The productivity of machinery has increased. B) The price of the product manufactured has increased. C) The wages of labour have increased. D) The productivity of labour has increased. Show Answer Correct Answer: D) The productivity of labour has increased. 25. If costs rise the supply curve shifts: A) Right. B) Left. C) Stays the same. D) None of above. Show Answer Correct Answer: B) Left. 26. The physical effort of people to produce goods or services describes which factor of production? A) Entrepreneurship. B) Natural Resources. C) Capital Resources. D) Human Resources. Show Answer Correct Answer: D) Human Resources. 27. Everything contained in the earth or found in the sea ex:coal and crude oil A) Land. B) Labor. C) Resources. D) Infrastructure. Show Answer Correct Answer: A) Land. 28. An increase in the labor force would cause the PPF to A) Shift outward. B) Turn into a straight line. C) Do nothing. D) Shift inward. Show Answer Correct Answer: A) Shift outward. 29. Human capital includes A) The machinery run by a seamstress to weave cloth. B) The salary paid to an accountant. C) The knowledge a taxi driver has of the city streets. D) The equipment used by a doctor to cure a patient. Show Answer Correct Answer: C) The knowledge a taxi driver has of the city streets. 30. Which of the following is considered "unskilled labor?" A) A cashier. B) A teacher. C) A doctor. D) An electrician. Show Answer Correct Answer: A) A cashier. ← 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