This quiz works best with JavaScript enabled. Home > Agriculture > Economics > Production > Production Economics – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What best describes the problem of scarcity? A) All consumer wants must be satisfied. B) All resources are free at the point of use. C) There are limited resources and unlimited wants. D) There are unlimited resources and limited wants. Show Answer Correct Answer: C) There are limited resources and unlimited wants. 2. Which of these terms is the BEST synonym for the word "entrepreneur"? A) Employee. B) Business owner. C) Student. D) Homeowner. Show Answer Correct Answer: B) Business owner. 3. Higher productivity is important as it: A) Increases average costs. B) Lower profits. C) Reduces average cost. D) Reduces the firm's ability to complete internationally. Show Answer Correct Answer: C) Reduces average cost. 4. If a firm does not produce any output, its costs are equal to A) Its implicit costs. B) Its fixed costs. C) Zero. D) Its variable costs. Show Answer Correct Answer: B) Its fixed costs. 5. What do economies aim to achieve in tackling the economic problem of scarcity? A) Equal balance between public and private sectors. B) Equal reward for equal effort. C) Increased competition in the use of resources. D) Optimum allocation of finite resources. Show Answer Correct Answer: D) Optimum allocation of finite resources. 6. ..... is the study of the production, distribution, and consumption of goods and services. A) School. B) Economics. C) Capitalism. D) Government. Show Answer Correct Answer: B) Economics. 7. Whay are the average total, average variblae, and marginal cost curves U shaped? A) They show the products increasing and decreasing quanitty in a market based on the laws of demand. B) They show increasing marginal returns f or small quantities of output followed by decreasing marginal returns for larger quantities of output. C) They demonstrate the relationship between creating and buying with in a monopolistic market. D) All of the above answer choices. Show Answer Correct Answer: B) They show increasing marginal returns f or small quantities of output followed by decreasing marginal returns for larger quantities of output. 8. Unlimited wants and limited resources lead to a condition called A) Scarcity. B) Opportunity costs. C) Economics. D) Risk. Show Answer Correct Answer: A) Scarcity. 9. Which of the following are NOT the objectives of a Muslim producer? A) Improve the conditions of society through the use of resources. B) Maximize level of profits. C) Obtain the blessings of Allah SWT. D) Achieve reasonable amount of profits. Show Answer Correct Answer: B) Maximize level of profits. 10. Cashiers at McDonalds are examples of ..... A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: B) Labor. 11. Any technology/machinery involved in the production process: A) Physical Capital. B) Investment Capital. C) Human Capital. D) Enterprise Capital. Show Answer Correct Answer: A) Physical Capital. 12. What is a variable cost to a firm producing bicycles? A) The rent of the bicycle factory. B) The component parts of the bicycles. C) The interest in money borrowed. D) The salaries of the senior managers. Show Answer Correct Answer: B) The component parts of the bicycles. 13. Underutlization shows an economy that is A) Experiencing growth. B) Maximizing production. C) Trading with other economies. D) Inefficient. Show Answer Correct Answer: D) Inefficient. 14. Which of the following examines the costs and expected benefits of a choice? A) Choice-profit analysis. B) Cost-profit analysis. C) Choice-benefit analysis. D) Cost-benefit analysis. Show Answer Correct Answer: D) Cost-benefit analysis. 15. All natural resources that go into the production of a good or service: A) Capital. B) Entrepreneurship. C) Land. D) Labor. Show Answer Correct Answer: C) Land. 16. Why a man will get zero reward while he is consuming legitimate things? A) He has no conscious intentions regarding his consumption. B) He is ready to refrain from consuming anything that God prohibits. C) He is changing the composition of his consumption through substituting halal for haram things. D) He is sharing some of his consumption with others example by paying zakah. Show Answer Correct Answer: A) He has no conscious intentions regarding his consumption. 17. The garbage truck is an example of which Factor of Production? A) Labor. B) Land. C) Entrepreneurship. D) Capital. Show Answer Correct Answer: D) Capital. 18. Marginal product curve and the average product curve intersect ..... A) At the maximum point of the average product curve. B) Where marginal product equals zero. C) Where total product is at a maximum. D) At the maximum point of the marginal product curve. Show Answer Correct Answer: C) Where total product is at a maximum. 19. The introduction of robots has meant that many firms now require fewer workers to produce their goods and services. According to this statement, which factor of production is replacing workers? A) Capital. B) Enterprise. C) Labour. D) Land. Show Answer Correct Answer: A) Capital. 20. The production possibilities curve is an illustration of what? A) Opportunity costs and trade-offs. B) Only opportunity costs. C) Only trade-offs. D) None of the above. Show Answer Correct Answer: A) Opportunity costs and trade-offs. 21. Long run production function means ..... A) Some factors are variable. B) Some factors are constant. C) Some factors are variable and some are constant. D) All the factors are variable. Show Answer Correct Answer: D) All the factors are variable. 22. ..... IS KNOWN AS THE NATURAL RESOURCES USED TO PRODUCE GOODS AND SERVICES A) Entrepreneurs. B) Capital. C) Labor. D) Land. Show Answer Correct Answer: D) Land. 23. Why are the factors of production important? A) They are not important. B) They are resources we get from the land. C) They give us what we want. D) They are the building blocks of the economy and are used to produce goods and services. Show Answer Correct Answer: D) They are the building blocks of the economy and are used to produce goods and services. 24. Which factor of production can a firm change in the short run? A) Labor. B) Land. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: A) Labor. 25. What is the process of using natural resources or goods and services? A) Production. B) Consumption. C) Distribution. D) None of above. Show Answer Correct Answer: B) Consumption. 26. Natural Resources/Land, Labor, Capital, and Entrepreneurship are the four main categories of .....? A) Economics. B) Infrastructure. C) Factors of Production. D) Factors of Bricklandia. Show Answer Correct Answer: C) Factors of Production. 27. Forests are examples of ..... A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: A) Land. 28. Use the following two statements to answer this question:I. Production functions describe what is technically feasible when the firm operates efficiently.II. The production function shows the least cost method of producing a given level of output. A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false. Show Answer Correct Answer: B) I is true, and II is false. 29. What do points inside the PPF indicate? A) The combination of goods that employ goods efficiently. B) The combination of goods that employ resources fully. C) The combination of goods that do not employ resources fully. D) None of above. Show Answer Correct Answer: C) The combination of goods that do not employ resources fully. 30. What is the main problem in economics? A) Scarcity. B) Choices. C) Unemployment. D) Shortage. Show Answer Correct Answer: A) Scarcity. ← PreviousNext →Related QuizzesEconomics QuizzesAgriculture QuizzesProduction Economics Quiz 1Production Economics Quiz 2Production 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