This quiz works best with JavaScript enabled. Home > Agriculture > Economics > Production > Production Economics – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 14 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is it called to move goods and services directly to or near consumers? A) Production. B) Consumption. C) Distribution. D) None of above. Show Answer Correct Answer: C) Distribution. 2. Tony opens up a hot chocolate stand for two hours. He spends £10 for ingredients and sells £60 worth of tasty beverages. In the same two hours, he could have provided Uber services (illegally because he isn't 18) and earned £40. Tony's accounting profit is ..... and his economic profit is ..... A) £90, £50. B) £50, £10. C) £10, £50. D) £50, £90. Show Answer Correct Answer: B) £50, £10. 3. The amount a firm receives for the sale of its output. A) Marginal Revenue. B) Profit. C) Total Revenue. D) Average Profit. Show Answer Correct Answer: C) Total Revenue. 4. Which of the following is the Marginal Cost formula? A) Change in TC/ Change in output. B) Change in P/Change in Q. C) Change in VC/Change in output. D) Both Change in TC/ Change in output & Change in VC/Change in output. Show Answer Correct Answer: D) Both Change in TC/ Change in output & Change in VC/Change in output. 5. Suppose that a new machine that speeds up automotive production is introduced into the auto industry. This would cause the PPF to A) Shift inward. B) Shift outward. C) Not enough information is provided. D) Do nothing. Show Answer Correct Answer: B) Shift outward. 6. What is the term for mutual dependence between people or countries? A) Interdependence. B) Co-Ownership. C) Co-Dependence. D) Independence. Show Answer Correct Answer: A) Interdependence. 7. What is revenue? A) All income that a business receives over a period of time; government income. B) The money a company pays out. C) The money a company pays its employees. D) The money a company loses. Show Answer Correct Answer: A) All income that a business receives over a period of time; government income. 8. In general, it is a bad move for a company to produce more of a good or service if, by doing so A) Marginal cost exceeds marginal revenue. B) Variable costs exceed fixed costs. C) Demand exceeds supply. D) Fixed costs exceed marginal revenue. Show Answer Correct Answer: A) Marginal cost exceeds marginal revenue. 9. Additional cost associated by producing one additional unit of product. A) Emplicit Costs. B) Average Costs. C) Marginal Costs. D) Fixed Costs. Show Answer Correct Answer: C) Marginal Costs. 10. I went to college right out of high school and did not get a full time job until four years later. What was the biggest cost to go to college? A) Books. B) The tuition. C) Missing my family. D) The money I didn't make at the job I didn't have. Show Answer Correct Answer: D) The money I didn't make at the job I didn't have. 11. The physical effort of the manpower to produce the basic needs of the consumers, describes which factor of production? A) Land. B) Labor. C) Capital. D) Entrepreneur. Show Answer Correct Answer: B) Labor. 12. Should our government use limited resources to build a post office, repair a bridge, or build a new park? What is the economic question asked? A) Why is this being produced?. B) How is it produced?. C) Who will consume these goods and services?. D) What is produced?. Show Answer Correct Answer: D) What is produced?. 13. What is meant by 'enterprise' in economics? A) Hard physical work used to produce manufactured goods. B) Natural resources used in the productive process. C) Human mental and physical effort used for producing goods and services. D) Risk taking and organizing the factors of production. Show Answer Correct Answer: D) Risk taking and organizing the factors of production. 14. The law of diminishing marginal returns states that A) As more of a variable input is used, while other inputs and technology are fixed, the average product of the variable input will increase. B) As more of a variable input is used, while other inputs and technology are fixed, the marginal product of the variable input will eventually decrease. C) As more of a variable input is used, while other inputs and technology are fixed, the average product of the fixed input will eventually decrease. D) As more of a fixed input is used, while other inputs and technology are variable, the marginal product of the variable input will eventually increase. Show Answer Correct Answer: B) As more of a variable input is used, while other inputs and technology are fixed, the marginal product of the variable input will eventually decrease. 15. The goods used in the production process such as factories, machinery and equipment A) Land. B) Labor. C) Resources. D) Capital. Show Answer Correct Answer: D) Capital. 16. Iron, minerals, coal and plants are examples of which productive resource? A) Land. B) Labor. C) Entrepreneurship. D) Capital. Show Answer Correct Answer: A) Land. 17. Who makes the decisions on how goods and services will be produced in a command economy? A) Individuals. B) The government and individuals. C) The Government. D) Traditions and culture. Show Answer Correct Answer: C) The Government. 18. Which factor of production is most affected by a hurricane destroying crops in Florida? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: A) Land. 19. A self-employed fortune teller earns a living by reading the palms of people's hands. Which factors of production are essential to this activity? A) A capital and enterprise. B) Enterprise and labour. C) Labour and land. D) Land and capital. Show Answer Correct Answer: B) Enterprise and labour. 20. A graphical representation of the alternative combinations of goods and services an economy can produce. A) Production Alternative Frontier. B) Production Performance Curve. C) Production Possibilities Frontier. D) Production Frontier Curve. Show Answer Correct Answer: C) Production Possibilities Frontier. 21. Which factor of production include any form of human effort exerted in production? A) Land. B) Labor. C) Capital. D) None of above. Show Answer Correct Answer: B) Labor. 22. The following items (accountant's computer, carpenter's drill, and a tailor's sewing machine) are all examples of which factor of production? A) Capital. B) Entrepreneurship. C) Land. D) Labor. Show Answer Correct Answer: A) Capital. 23. What is not enough supply or a very small supply? A) Demand. B) Supply. C) Scarcity. D) Competition. Show Answer Correct Answer: C) Scarcity. 24. Total Revenue - (Explicit +Implicit Costs)=?What is this the equation for? A) Marginal Profit. B) Economic Profit. C) Normal Profit. D) Total Cost. Show Answer Correct Answer: B) Economic Profit. 25. To be a successful entrepreneur requires a willingness to A) Play it safe. B) Limit risks. C) Borrow money. D) Take risks. Show Answer Correct Answer: D) Take risks. 26. What would an economist regard as an example of the factor of production capital? A) An individual's purchase of stocks and shares. B) The building of a new factory. C) Borrowing by a firm to pay for electricity. D) Total savings by individuals in a country. Show Answer Correct Answer: B) The building of a new factory. 27. What does an economist mean by the factor of production called capital? A) Money used to start a business. B) The profits of a company. C) Money used to start a business. D) Goods that can be used to produce other goods. Show Answer Correct Answer: D) Goods that can be used to produce other goods. 28. A Factor of Production is A) Used in the Production of things that are useful. B) Used in the production of goods and services. C) Used in the production of goods. D) Used in the production of services. Show Answer Correct Answer: B) Used in the production of goods and services. 29. Term for costs that change with production A) Variable Cost. B) Fixed Cost. C) Average Cost. D) Marginal Cost. Show Answer Correct Answer: A) Variable Cost. 30. What is a leading factor in predicting the life expectancy of a country? A) The production of a country. B) The amount of land of a country. C) The amount spent on healthcare for a country. D) The average temperature of a country. Show Answer Correct Answer: A) The production of a country. ← 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