This quiz works best with JavaScript enabled. Home > Agriculture > Economics > Production > Production Economics – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 12 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What are expenses? A) There is no such thing. B) Costs of operating a business. C) The money a company makes. D) The act of buy items. Show Answer Correct Answer: B) Costs of operating a business. 2. Which is not considered a need? A) Clothing. B) Food. C) Shelter. D) Television. Show Answer Correct Answer: D) Television. 3. What is the best explanation of factors of production? A) Money and financing. B) Raw materials used to produce products. C) Labor and materials. D) Resources used by a company to produce good and services. Show Answer Correct Answer: D) Resources used by a company to produce good and services. 4. Which of the following calculations would you use to find total costs? A) Total Fixed Costs / Selling Price - Variable Cost. B) Total Fixed Costs/Variable Cost Per Item. C) Selling Price - Fixed Costs. D) Fixed Costs + Variable Costs. Show Answer Correct Answer: D) Fixed Costs + Variable Costs. 5. An Iso-quant shows the same level of ..... throughout the curve. A) Profit. B) Production. C) Satisfaction. D) Expenditure. Show Answer Correct Answer: B) Production. 6. Which of the following is counted as capital goods when assessing Depreciation? A) An oven. B) All of the above. C) A Petroleum Engineer. D) A Power Plant Operator. Show Answer Correct Answer: B) All of the above. 7. When we use up or significantly reduce our resources A) Surplus. B) Recycling. C) Depletion. D) Dilution. Show Answer Correct Answer: C) Depletion. 8. A government wishes to increase agricultural output. It gives farmers the tools to irrigate the farmers' fields. Which factors of production are provided by the farmers? A) Capital and enterprise. B) Labor and land. C) Enterprise and labor. D) Land and capital. Show Answer Correct Answer: B) Labor and land. 9. Kaylee decides to subscribe to Hulu instead of Netflix. Netflix is her: A) Choice. B) Opportunity Cost. C) Barter. D) Production Possibility. Show Answer Correct Answer: B) Opportunity Cost. 10. Economic growth affects the PPF by ..... A) Shifting inward. B) Shifting outward. C) Causing no change at all. D) Turning it into a straight line. Show Answer Correct Answer: B) Shifting outward. 11. Groceries are a: A) Discretionary expense. B) Intermittent expense. C) Fixed expense. D) Variable expense. Show Answer Correct Answer: D) Variable expense. 12. An economic system based on businesses relying on competition and individuals making decisions is which of the following? A) Market. B) Command. C) Mixed. D) Traditional. Show Answer Correct Answer: A) Market. 13. When is a firm most likely to reduce its demand for labour? A) When the demand for the final good increases. B) When the firm's profitability increases. C) When the price of labour decreases. D) When the productivity of labour decreases. Show Answer Correct Answer: D) When the productivity of labour decreases. 14. The term "factors of production" means: A) Things or skills needed to produce goods or services. B) How society creates jobs. C) How we spend our money. D) The resources of the government. Show Answer Correct Answer: A) Things or skills needed to produce goods or services. 15. Economics textbooks identify the existence of scarcity as the basic economic problem. What is it that makes scarcity a problem? A) It can cause inflation and unemployment. B) It is impossible to satisfy unlimited wants. C) It is the first priority of governments. D) It only affects the richest countries. Show Answer Correct Answer: B) It is impossible to satisfy unlimited wants. 16. Which if these is an advantage of labour intensive production? A) People are easier to manage than machines. B) More flexibility. C) Lower unit costs. D) More consistent in production. Show Answer Correct Answer: B) More flexibility. 17. A laptop is an example of ..... A) Natural Resources. B) Human Resources. C) Capital Resources. D) Entrepreneurship. Show Answer Correct Answer: C) Capital Resources. 18. Which factor of production involves risk-taking? A) Capital. B) Labor. C) Enterprise. D) Land. Show Answer Correct Answer: C) Enterprise. 19. What does a point inside the curve of a PPC indicate? A) All resources are fully employed. B) Not all resources are fully employed. C) More resources are required. D) Less resources are required. Show Answer Correct Answer: B) Not all resources are fully employed. 20. What is the cause of the economic problem facing all countries? A) A.Climate change and global warming. B) Uneven distribution of income and wealth. C) Significant quantities of unemployed resources. D) Unlimited wants in relation to limited resources. Show Answer Correct Answer: D) Unlimited wants in relation to limited resources. 21. Unlimited wants and or needs describes what economic concept? A) Scarcity. B) Factors of Production. C) Economy. D) Resources. Show Answer Correct Answer: A) Scarcity. 22. When marginal cost is below average cost.. A) Average cost will be rising. B) Average cost will be falling. C) Marginal cost will be negative. D) Average cost will be the same as maginal cost. Show Answer Correct Answer: B) Average cost will be falling. 23. Gold, trees, coal, oil are examples of which factor of production? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: A) Land. 24. What is Depreciation? A) Inflation. B) Taxes. C) Capital Consumption Allowance (CCA). D) All of the above. Show Answer Correct Answer: C) Capital Consumption Allowance (CCA). 25. Name the 3 factors of production. A) Trade off, natural resources, labor. B) Natural resources, human capital, scarcity. C) Opportunity costs, natural resources, labor. D) Natural resources, human resources, capital resources. Show Answer Correct Answer: D) Natural resources, human resources, capital resources. 26. The opportunity cost of building a new high school is: A) The expense of hiring more teachers for the new high school. B) The expense of new desks, chalkboards and books for the new high school. C) Other goods and services, which must now be sacrificed to build the new high school. D) Overcrowded classrooms. Show Answer Correct Answer: C) Other goods and services, which must now be sacrificed to build the new high school. 27. A Factory Worker is an example of ..... A) Natural Resources. B) Capital Resources. C) Human Resources. D) Entrepreneurship. Show Answer Correct Answer: C) Human Resources. 28. To a student, pencil and paper would be considered a ..... resource. A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 29. This is the factor of production that is motivated to take a risk by combining the factors of production. A) Physical Capital. B) Human Resources. C) Natural Resouces. D) Entrepreneur. Show Answer Correct Answer: D) Entrepreneur. 30. A garbage truck driver is an example of which Factor of Production? A) Labor. B) Land. C) Entrepreneurship. D) Capital. Show Answer Correct Answer: A) Labor. ← 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