This quiz works best with JavaScript enabled. Home > Agriculture > Economics > Production > Production Economics – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Difference between wants and needs and available resources A) Economy. B) Resources. C) Factors of Production. D) Scarcity. Show Answer Correct Answer: D) Scarcity. 2. The people who decide to buy. A) Producers. B) Entreprenuers. C) Economist. D) Consumers. Show Answer Correct Answer: D) Consumers. 3. Sum of the fixed cost and variable costs A) Marginal Cost. B) Average Cost. C) Variable Cost. D) Total Cost. Show Answer Correct Answer: D) Total Cost. 4. Which of the following is an example of "services?" A) Mrs. Brickley gets her hair cut. B) Mrs. Brickley invents a new video game. C) Mrs. Brickley buys yarn at Michael's. D) Mrs. Brickley volunteers at the San Antonio Food Bank. Show Answer Correct Answer: A) Mrs. Brickley gets her hair cut. 5. What is the definition of production based on Kahf? A) Produce and manufacture such things which are quite essential for human lives. B) Fulfilment of one's own needs in moderation, family and future with contribute to cause of Allah. C) Man's effort to improve material condition and moral to obtain his goal in the hereafter. D) Process that transforms resources into finished goods to fulfil consumer's needs. Show Answer Correct Answer: C) Man's effort to improve material condition and moral to obtain his goal in the hereafter. 6. If Mr. Dawson is given a pay raise, what would be the most likely effect? A) A decrease in the cost of his labor. B) A decrease in the opportunity cost of quitting his job. C) An increase in his human capital. D) An increase in his standard of living. Show Answer Correct Answer: D) An increase in his standard of living. 7. Which of the following would be an example of a fixed cost on a farm? A) Mortgage on the land. B) Costs of seed. C) Fuel to operate machinery. D) Charge for fertilizer for the growing season. Show Answer Correct Answer: A) Mortgage on the land. 8. What happens when there is a limited supply of one of the factors of production? A) It could cause the other factors to be in limited supply. B) It has no impact. C) It causes the supply to go up for the product. D) Labor becomes less skilled. Show Answer Correct Answer: A) It could cause the other factors to be in limited supply. 9. After more than 70 years of production, a German car manufacturer, Volkswagen, has decided to locate the production of its biggest selling car in developing countries, rather than Germany. What is the main advantage of this policy? A) To access new management techniques. B) To make use of better infrastructure. C) To sell the car only to customers in developing countries. D) To train and employ labor at a lower cost. Show Answer Correct Answer: D) To train and employ labor at a lower cost. 10. To increase marginal return, a company might consider A) Purchasing more machinery. B) Reducing output. C) Increasing output. D) Stopping production. Show Answer Correct Answer: A) Purchasing more machinery. 11. Extra cost of producing one more unit A) Marginal cost. B) Fixed Cost. C) Average Cost. D) Variable Cost. Show Answer Correct Answer: A) Marginal cost. 12. Efficiency along the PPC implies A) Goods are distributed equitably. B) The state of technology is maximized. C) Goods are produced quickly. D) , In order to get more of a good, some of another must be given up. Show Answer Correct Answer: D) , In order to get more of a good, some of another must be given up. 13. A microeconomist would study A) A general decline in prices. B) A rise in tea prices. C) The ups and downs of business cycles. D) The impact of national tax policies. Show Answer Correct Answer: B) A rise in tea prices. 14. Average product is at its maximum, when average variable cost is at its? A) Stable Point. B) Maximum. C) Turning Point. D) Minimum. Show Answer Correct Answer: D) Minimum. 15. How can you increase your human capital? A) Take an online class. B) Work an extra shift. C) Buy a car. D) Go to Sonic after school. Show Answer Correct Answer: A) Take an online class. 16. The main difference between the SR and the LR is that A) The law of diminishing returns applies in the LR. B) All resources are variable in the LR. C) Fixed costs are more important to decision making in the LR. D) In the SR all resources are fixed. Show Answer Correct Answer: B) All resources are variable in the LR. 17. The term, "capital goods" means: A) Goods not created for their own use, but to make other goods/services. B) Work the people do to produce goods and services. C) Person who organizes the factors of production to produce goods/services; business owners. D) The natural resources used to produce goods or services. Show Answer Correct Answer: A) Goods not created for their own use, but to make other goods/services. 18. A production function is an expression of ..... relation between inputs and outputs. A) Quantitative. B) Economic. C) Monetary. D) Qualitative. Show Answer Correct Answer: A) Quantitative. 19. When the total product is maximum, the marginal product is ..... A) Positive. B) Zero. C) Negative. D) Maximum. Show Answer Correct Answer: B) Zero. 20. Production is a very significant process in Islamic economics because A) Humans have been appointed by Allah as His khalifah to manage the earth and build civilization. B) Most of the raw materials created by Allah must be transformed into final goods and services before they are fit for consumption. C) Production activities are the main sources of income for humans to support their survival on earth and achieve falah. D) It contributes directly to the creation of wealth which the country needs to preserve social order and promote economic development. Show Answer Correct Answer: B) Most of the raw materials created by Allah must be transformed into final goods and services before they are fit for consumption. 21. In the long run, firms should decide to shut down if what condition holds? A) Price is less than both average cost and average variable cost. B) Price is less than both average cost. C) Price is less than average variable cost. D) Price is less than average fixed cost. Show Answer Correct Answer: A) Price is less than both average cost and average variable cost. 22. A Teacher is an example of A) Natural Resources. B) Capital Resources. C) Entrepreneurship. D) Human Resources. Show Answer Correct Answer: D) Human Resources. 23. The creation of any kind of good or service is known as: A) Resources. B) Entrepreneurship. C) Production. D) Input. Show Answer Correct Answer: C) Production. 24. Which is an example of entrepreneurship? A) Being a member of the USWNT soccer team. B) Working for Wal-Mart. C) Creating a new product. D) Managing the Shell station for you friend. Show Answer Correct Answer: C) Creating a new product. 25. The Chromebooks you are using are examples of (Think about the purpose of schools, and what they are trying to produce.) A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: D) Capital. 26. Additional cost associated with producing one additional unit of output: A) Fixed Costs. B) Marginal Costs. C) Average Costs. D) Emplicit Costs. Show Answer Correct Answer: B) Marginal Costs. 27. The long-run ATC curve: A) Will rise if there are diminishing returns. B) Will fall if there are diminishing returns. C) Will rise if economies of scale are incurred. D) Is based on the assumption that all resources are variable. Show Answer Correct Answer: D) Is based on the assumption that all resources are variable. 28. In marketing strategy, Islamic producer should ..... A) Create barriers to entry. B) Follow the fair rules in all its dealing. C) Use the deceptive advertising to promote. D) Participate in lending or borrowing money at fixed price. Show Answer Correct Answer: B) Follow the fair rules in all its dealing. 29. Scenario:In country Z, people rarely exchange money for goods or services. They grow their own crops and raise their own livestock.Which economic system is being described? A) Command. B) Market. C) Mixed. D) Traditional. Show Answer Correct Answer: D) Traditional. 30. A bulldozer is an example of ..... A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: D) Capital. ← PreviousNext →Related QuizzesEconomics QuizzesAgriculture QuizzesProduction Economics Quiz 1Production Economics Quiz 2Production Economics Quiz 3Production Economics Quiz 5Production Economics Quiz 6Production Economics Quiz 7Production Economics Quiz 8Production Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books