This quiz works best with JavaScript enabled. Home > Agriculture > Economics > Production > Production Economics – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Total Costs / Quantity = ..... A) Implicit Cost. B) Explicit Cost. C) Marginal Cost. D) Average Total Cost. Show Answer Correct Answer: D) Average Total Cost. 2. A trained automobile mechanic would be an example of: A) Natural Resources. B) Human Capital. C) Entrepreneurship. D) Capital goods. Show Answer Correct Answer: B) Human Capital. 3. The people who work and contribute to the economy A) Human Resources. B) Entrepreneurship. C) Natural Resources. D) Capital Resources. Show Answer Correct Answer: A) Human Resources. 4. Adam Smith argued that a nation would be wealthier if it engaged in A) Mercantilism. B) Free trade. C) State-controlled mercantilism. D) State-controlled trade. Show Answer Correct Answer: B) Free trade. 5. The relationship between the factors of production and the output of goods and services. A) Stages of Production. B) Marginal Product. C) Law of Variable Proportions. D) Production Function. Show Answer Correct Answer: D) Production Function. 6. Which of the following inputs are variable in the long run? A) Labour. B) Capital and equipment. C) Plant size. D) All of above. Show Answer Correct Answer: D) All of above. 7. Which of the following is a role of an entrepreneur? A) Producing final accounts to measure performance. B) Organizing. C) Specializing. D) Training. Show Answer Correct Answer: B) Organizing. 8. Which statement about factors of production is correct? A) A Capital is the amount of money borrowed from a bank. B) Labour is output made by an employee. C) Land includes commercially grown rice crops. D) Profit is the reward for enterprise. Show Answer Correct Answer: D) Profit is the reward for enterprise. 9. Which of these products is most likely to be produced using labour intensive production methods? A) Smartphones. B) Motor bikes. C) Wedding gowns. D) Biscuits. Show Answer Correct Answer: C) Wedding gowns. 10. Which of the following is an economic good A) Newspapers. B) Air. C) Water. D) Sunlight. Show Answer Correct Answer: A) Newspapers. 11. Anna bought a lamp at a garage sale. She repaired it and painted it, then she sold it for a profit. The list below is what she did:*paid for the lamp $ 5*cost to paint $ 3*cost for new shade $ 7*selling price $ 30What was Anna's profit from selling the lamp? A) $ 15. B) $ 20. C) $ 35. D) $ 25. Show Answer Correct Answer: A) $ 15. 12. If there is improved technique of Production in both the goods, how the PPC will be affected? A) Leftward shift of PPC. B) Rightward shift of PPC. C) Rotation of PPC. D) None of the above. Show Answer Correct Answer: B) Rightward shift of PPC. 13. Economists refer to factors of production. Which is not a factor of production? A) The staff in an office. B) The fields of a farm. C) The shares of a company. D) The machinery in a factory. Show Answer Correct Answer: C) The shares of a company. 14. The property whereby long-run average total cost falls as the quantity of output increases. A) Diseconomies of Scale. B) Constant Returns to Scale. C) Efficient Scale. D) Economies of Scale. Show Answer Correct Answer: D) Economies of Scale. 15. What is the term for a consumer's desire and willingness to pay a price for a specific good or service? A) Demand. B) Supply. C) Wants. D) Needs. Show Answer Correct Answer: A) Demand. 16. A production function shows about the relationship between A) Input and cost. B) Outputs and cost. C) Products and cost. D) Input and Output. Show Answer Correct Answer: D) Input and Output. 17. The average amount of output produced by each labor employed is A) Total Product. B) Production function. C) Average product. D) Marginal Product. Show Answer Correct Answer: C) Average product. 18. Costs that do not change when the quanity of output produced changes? A) Explicit Costs. B) Fixed Costs. C) Variable Costs. D) Implicit Costs. Show Answer Correct Answer: B) Fixed Costs. 19. If a bakery can produce 100 cupcakes for $ 100 and 200 cupcakes for $ 150, what is the marginal cost per cupcake for the additional 100 cupcakes? A) $ 0.25. B) $ 0.75. C) $ 1.00. D) $ 0.50. Show Answer Correct Answer: D) $ 0.50. 20. Deciding to go to a football game rather than doing your homework is an example of a(n) A) Opportunity expense. B) Marginal cost. C) Production possibility. D) Trade-off. Show Answer Correct Answer: D) Trade-off. 21. After the stuffed animals are made they are brought to the stores in large trucks; this is called ..... A) Production. B) Consumption. C) Distribution. D) None of above. Show Answer Correct Answer: C) Distribution. 22. The best definition of variable costs is: A) They vary with the prices charged by suppliers. B) They vary with the number of units produced. C) They vary over time. D) They vary with tax rates set by government. Show Answer Correct Answer: B) They vary with the number of units produced. 23. Costs that do not change when the quanity of output produced changes is called A) Fixed Costs. B) Implicit Costs. C) Explicit Costs. D) Variable Costs. Show Answer Correct Answer: A) Fixed Costs. 24. An objective of production in Islam is to ..... A) Make a lot of production. B) Fulfill necessity moderately. C) Attract investor. D) Use production factors maximal. Show Answer Correct Answer: B) Fulfill necessity moderately. 25. Government leaders meet to decide what products will be produced. They then tell businesses what and how much to produce.Which economic system is being described? A) Market. B) Command. C) Mixed. D) Traditional. Show Answer Correct Answer: B) Command. 26. ..... an addition to the total production by the employment of an extra unit of a factor. A) Marginal Product. B) Output. C) Average Product. D) Total Product. Show Answer Correct Answer: A) Marginal Product. 27. The amount a firm receives after all costs have been paid. A) Marginal Revenue. B) Revenue. C) Profit. D) Marginal Profit. Show Answer Correct Answer: C) Profit. 28. Which factor of production completes the excerpt:" ..... are a vital engine of economic development creating some of the largest firms in the world as well as small businesses. ..... prosper in economies where they have the freedom to start businesses and buy resources freely." A) Land. B) Labor. C) Capital. D) Entrepreneur. Show Answer Correct Answer: D) Entrepreneur. 29. Kelly makes and sells quilted blankets out of her home. She charges $ 50 per blanket. For each blanket she makes, she must spend $ 1 on thread, $ 2 in electricity and $ 12 on cloth. This month she made and sold 15 blankets. What is Kelly's total COST? A) $ 25. B) $ 750. C) $ 225. D) $ 525. Show Answer Correct Answer: C) $ 225. 30. All of the things that a company needs to make their products are called ..... A) Factors of production. B) Human resources. C) Economics. D) Capital resources. Show Answer Correct Answer: A) Factors of production. ← PreviousNext →Related QuizzesEconomics QuizzesAgriculture QuizzesProduction Economics Quiz 1Production Economics Quiz 2Production Economics Quiz 3Production Economics Quiz 4Production Economics Quiz 5Production Economics Quiz 7Production Economics Quiz 8Production Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books