This quiz works best with JavaScript enabled. Home > Agriculture > Economics > Production > Production Economics – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 13 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. AN ENTREPRENEUR IS A PERSON WHO ..... A) Owns their own business. B) Uses goods and services to produce labor, land, and capital. C) Use land, labor, and capital to produce good and services. D) Loves nature and runs a business. Show Answer Correct Answer: C) Use land, labor, and capital to produce good and services. 2. In economics, the value of the next best alternative is called ..... A) Scarcity. B) Productivity. C) Opprotunity Cost. D) Supply and Demand. Show Answer Correct Answer: C) Opprotunity Cost. 3. ..... is a function of inputs. A) Labour. B) Production Function. C) Raw Materials. D) Output. Show Answer Correct Answer: D) Output. 4. What is the term for doing work for others in exchange for pay? A) Jobs. B) Secret. C) Service. D) Socialism. Show Answer Correct Answer: C) Service. 5. What is the difference between a shortage and scarcity? A) Scarcity always exists. B) Scarcity results from falling prices. C) Scarcity concerns a single item. D) There is no real difference. Show Answer Correct Answer: A) Scarcity always exists. 6. What is the productivity level of 4 workers that produce a total of 20 shirts? A) 100 shirts per worker. B) 4 shirts per worker. C) 5 shirts per worker. D) 20 shirts per worker. Show Answer Correct Answer: C) 5 shirts per worker. 7. The total revenue of a business is: A) Equal to total costs. B) Quantity of units sold multiplied by the sellingprice. C) Quantity of units produced times unit production cost. D) The same as profit. Show Answer Correct Answer: B) Quantity of units sold multiplied by the sellingprice. 8. The term, "labor" means: A) Work the people do to produce goods and services. B) The natural resources used to produce goods or services. C) Person who organizes the factors of production to produce goods/services; business owners. D) Goods not created for their own use, but to make other goods/services. Show Answer Correct Answer: A) Work the people do to produce goods and services. 9. A factory worker is an example of which factor of production? A) Land/Natural Resources. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: B) Labor. 10. The study of how individuals, institutions, and scarcity make choices under the conditions of scarcity is A) Allocation. B) Scarcity. C) Economics. D) Specialization. Show Answer Correct Answer: C) Economics. 11. What does marginal cost (MC) tell us? A) Is variable cost. B) The increase in total cost that arises from producing an additional unit of output. C) Is cost from fixed input. D) The increase in output that arises from an additional unit of input. Show Answer Correct Answer: D) The increase in output that arises from an additional unit of input. 12. Average variable cost (AVC) is A) Variable cost divided by output. B) The increase in output that arises from an additional unit of input. C) Costs that do not vary with the quantity of output produced. D) Explicit costs. Show Answer Correct Answer: A) Variable cost divided by output. 13. Which of the following statement is NOT true of variable cost? A) Total variable cost is zero when output is zero. B) Total variable cost rises with a constant slope as output rises. C) Total cost rises as output rises. D) Variable cost is paid for the use of variable factors. Show Answer Correct Answer: B) Total variable cost rises with a constant slope as output rises. 14. What is the process of making goods and services? A) Production. B) Distribution. C) Consumption. D) None of above. Show Answer Correct Answer: A) Production. 15. Scarcity requires people to make choices. Why? A) People have more wants than needs. B) There are not enough resources to make everything we want. C) Producers rarely make enough of a good. D) Services are easier to get than goods. Show Answer Correct Answer: B) There are not enough resources to make everything we want. 16. Which one of the following costs is most likely to be variable for a fast food restaurant? A) The rent of the restaurant. B) The cost of the food supplies. C) The salary of the manager. D) The machinery used to cook the food. Show Answer Correct Answer: B) The cost of the food supplies. 17. The iPad the waitress uses to take your order A) Capital Resource. B) Human Resource. C) Natural Resource. D) Entrepreneurship. Show Answer Correct Answer: A) Capital Resource. 18. The term used to describe the way a nation provides for the needs and wants of its people A) Economy. B) Resources. C) Factors of production. D) Infrastructure. Show Answer Correct Answer: A) Economy. 19. Land, labor, capital, and entrepreneurship A) Capital. B) Economy. C) Infrastructure. D) Factors of production. Show Answer Correct Answer: D) Factors of production. 20. Ray Kroc, the founder of the fast-food chain McDonald's, would be an example of this factor of production: A) Natural Resources. B) Entrepreneurship. C) Capital Goods. D) Human Capital. Show Answer Correct Answer: B) Entrepreneurship. 21. A synonym for labor A) Hard. B) Fun. C) Work. D) Easy. Show Answer Correct Answer: C) Work. 22. An oil company announced in 2015 that it was starting its drilling operations for oil deposits in the Arctic Ocean. What will be the effect of this? A) To increase the supply of raw materials. B) To reduce the level of technology available. C) To solve the economic problem. D) To worsen resource allocation. Show Answer Correct Answer: A) To increase the supply of raw materials. 23. What shape does a marginal cost curve take A) U shaped. B) Nike swoosh. C) Loop de loops. D) Logarithmic. Show Answer Correct Answer: B) Nike swoosh. 24. Doing work for others A) Service. B) Secret. C) Socialism. D) None of above. Show Answer Correct Answer: A) Service. 25. Which factor of production is the least mobile? A) Capital. B) Labor. C) Enterprise. D) Land. Show Answer Correct Answer: D) Land. 26. Any point on the Production Possibilities Frontier represents A) A Tradeoff. B) Inefficiency. C) Underutilization. D) Unattainable Level of Production. Show Answer Correct Answer: A) A Tradeoff. 27. What is the production possibilities curve? A) A graph that shows how efficient an economy can produce a combination of 2 goods. B) A graph that shows how much money something is. C) A graph that shows the opportunity a country has to give up in order to lose something else. D) A visual representation of how land, labor, capital, entrepreneurs are distributed. Show Answer Correct Answer: A) A graph that shows how efficient an economy can produce a combination of 2 goods. 28. A person who purshases ( buys) and uses a good or service A) Communism. B) Capital. C) Consumer. D) None of above. Show Answer Correct Answer: C) Consumer. 29. The basic economic conditions that exist when unlimited wants exceed limited productive resources is called A) Capital. B) Factors of production. C) Economics. D) Scarcity. Show Answer Correct Answer: D) Scarcity. 30. What does a high Depreciation value indicate? A) That the NNP is only low. B) That the GNP is only low. C) That the GNP and NNP are both low. D) There is poor economic growth. Show Answer Correct Answer: D) There is poor economic growth. ← 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