This quiz works best with JavaScript enabled. Home > Agriculture > Economics > Production > Production Economics – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Buisness owner, starts and runs the buisness A) Entrepreneur. B) Educator. C) Elephant. D) None of above. Show Answer Correct Answer: A) Entrepreneur. 2. In which of the following situations would a business be wise to shut its factory? A) When marginal costs exceed fixed costs. B) When fixed costs exceed revenue. C) When revenue exceeds variable costs. D) When total costs exceed marginal costs. Show Answer Correct Answer: B) When fixed costs exceed revenue. 3. These are the things we desire to have. A) Wants. B) Goals. C) Opportunity Costs. D) None of above. Show Answer Correct Answer: A) Wants. 4. Which is not an example of land? A) Tree. B) Gold. C) Horse. D) Saw. Show Answer Correct Answer: D) Saw. 5. A steel factory is an example of A) Land. B) Labor. C) Entrepreneurship. D) Capital. Show Answer Correct Answer: D) Capital. 6. ..... IS KNOWN AS THE MANMADE RESOURCES USED TO PRODUCE GOODS AND SERVICES. A) Entrepreneurs. B) Capital. C) Labor. D) Land. Show Answer Correct Answer: B) Capital. 7. Two farmers are picking apples on a farm and placing them on the bed of a truck. This is an example of which factor of production(s)? A) Land and labor. B) Labor only. C) Capital. D) Land, labor, and capital. Show Answer Correct Answer: D) Land, labor, and capital. 8. The knowledge a taxi driver uses to navigate the city is an example of A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 9. When is a firm considered more capital-intensive than another firm? A) When it has more machines than the other firm. B) When it has a lower ratio of workers to machines than the other firm. C) When it has higher variable costs than the other firm. D) When it has fewer workers than the other firm. Show Answer Correct Answer: B) When it has a lower ratio of workers to machines than the other firm. 10. Formula for Marginal Product (MP) is: A) $ \frac{Q_{input}}{Total\ product}$. B) $ \frac{TP}{Q_{input}}$. C) $ \frac{\Delta TP}{\Delta Q_{input}}$. D) $ \frac{Change\ in\ Quality}{Change\ in\ price}$. Show Answer Correct Answer: C) $ \frac{\Delta TP}{\Delta Q_{input}}$. 11. Assembly line worker A) Land. B) Entrepreneurship. C) Capital. D) Labor. Show Answer Correct Answer: D) Labor. 12. Which change will make a manufacturing company replace labour with capital to maintain the most efficient combination of factors of production? A) The supply of labour has increased. B) The price of machinery has increased. C) The productivity of machinery has increased. D) The productivity of labour has increased. Show Answer Correct Answer: C) The productivity of machinery has increased. 13. An economic system where the government and individuals decide how to use their resources is which of the following? A) Mixed. B) Command. C) Market. D) Traditional. Show Answer Correct Answer: A) Mixed. 14. What would be classified by an economist as the factor of production known as land? A) Money held by the oil companies in their bank accounts. B) The productivity of oil workers. C) A discovery of oil in the South China sea. D) An oil rig bought by an oil company. Show Answer Correct Answer: C) A discovery of oil in the South China sea. 15. Oil is an example of A) Natural Resources. B) Capital Resources. C) Entrepreneurship. D) Human Resources. Show Answer Correct Answer: A) Natural Resources. 16. If a firm does not produce any output, its total cost is equal to A) Zero. B) Its variable costs. C) Its fixed costs. D) Its marginal cost. Show Answer Correct Answer: C) Its fixed costs. 17. If the production of good X increases by 3 units and production of good Y decreases by one unit, then the opportunity cost of one unit of X is ..... unit(s) of Y. A) 4. B) 1. C) 3. D) 1/3. Show Answer Correct Answer: D) 1/3. 18. Which of the following are all considered to be land? A) Natural gas, coal, trees, water. B) Dams, bridges, gravel pits, oil wells. C) Factories, buildings, workers, bees. D) Corn fields, tractors, computers, rakes. Show Answer Correct Answer: A) Natural gas, coal, trees, water. 19. All the people who have jobs or are looking for a job A) Labor force. B) Employed. C) Division of labor. D) None of above. Show Answer Correct Answer: A) Labor force. 20. At an output of 25 units, a firm's total cost is $ 250. If that firm's average variable cost is $ 4 per unit, what is its total fixed cost? A) $ 10. B) $ 100. C) $ 150. D) $ 5. Show Answer Correct Answer: C) $ 150. 21. To make cars, you use machines; these are ..... A) Factors of production. B) Natural resources. C) Capital resources. D) Human resources. Show Answer Correct Answer: C) Capital resources. 22. What is the basic problem facing all economies? A) How to maximise tax revenues. B) How to reach full employment. C) How to use scarce resources. D) How to achieve a stable balance of payments. Show Answer Correct Answer: C) How to use scarce resources. 23. Total Product is A) The Quantity of Output. B) The Quantity of Input. C) The Quality of Input. D) The Quality of Output. Show Answer Correct Answer: A) The Quantity of Output. 24. All of the economic inputs that are required to produce goods and services are called: A) Factors of production. B) Supply. C) Demand. D) Capital for goods. Show Answer Correct Answer: A) Factors of production. 25. In recent years more golf courses, which use large quantities of water, have opened in China. What may be the opportunity cost of this? A) Cost of water. B) Loss of farmland. C) Sales of golf equipment. D) Wages of golf course staff. Show Answer Correct Answer: B) Loss of farmland. 26. The physical development of a country including roads, ports, utilities A) Land. B) Labor. C) Infrastructure. D) Entrepreneurship. Show Answer Correct Answer: C) Infrastructure. 27. All of the things necessary for production are known as: A) Resources. B) Production. C) Outputs. D) Entrepreneurship. Show Answer Correct Answer: A) Resources. 28. A system in which people produce, sell and buy goods and services A) Economy. B) Ecosystem. C) Education. D) None of above. Show Answer Correct Answer: A) Economy. 29. What is the function of the factors of production in an economy? A) To make goods and services to fulfil wants and needs. B) To provide an even distribution of income. C) To provide tax income for the government. D) To reduce the existence of external costs. Show Answer Correct Answer: A) To make goods and services to fulfil wants and needs. 30. People who help stock the shelves at the store are called ..... A) Capital resources. B) Factors of production. C) Human resources. D) Natural resources. Show Answer Correct Answer: C) Human resources. ← PreviousNext →Related QuizzesEconomics QuizzesAgriculture QuizzesProduction Economics Quiz 1Production Economics Quiz 3Production Economics Quiz 4Production Economics Quiz 5Production Economics Quiz 6Production Economics Quiz 7Production Economics Quiz 8Production Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books