This quiz works best with JavaScript enabled. Home > Agriculture > Economics > Production > Production Economics – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the reward to land? A) Interest. B) Rent. C) Capital. D) Wages. Show Answer Correct Answer: B) Rent. 2. In the acronym GDP, the P stands for A) Percentage. B) Possibility. C) Probabilty. D) Product. Show Answer Correct Answer: D) Product. 3. Private multinational clothing companies operate in developing countries to reduce their average costs of production. Which feature of developing countries attracts them for this purpose? A) In developing countries, clothing workers receive low wages. B) In developing countries, foreign managers are allowed to pay no income tax. C) In developing countries, multinationals are allowed to take profits out of the country. D) In developing countries, there is a large market for fashion clothing. Show Answer Correct Answer: A) In developing countries, clothing workers receive low wages. 4. If a mass immigration occurs, the production possibilities curve can shift A) To the left. B) No shift. C) To the right. D) Outward on one axis only. Show Answer Correct Answer: C) To the right. 5. A person who uses and buys goods and services A) Consumer. B) Money. C) Producer. D) Economics. Show Answer Correct Answer: A) Consumer. 6. What are the four factors of production? A) Land, labor, capital, and entrepreneurship. B) Land, labor, money, and entrepreneurship. C) Resources, labor, capital, and entrepreneurship. D) Resources, labor, money, and entrepreneurship. Show Answer Correct Answer: A) Land, labor, capital, and entrepreneurship. 7. Input costs that may not have a direct outlay of money but rather an opportunity cost: A) Explicit Cost. B) Variable Cost. C) Implicit Cost. D) Fixed Cost. Show Answer Correct Answer: C) Implicit Cost. 8. If a natural disaster strikes, the production possibilities curve can shift A) To the right. B) No shift. C) Outward on one axis only. D) To the left. Show Answer Correct Answer: D) To the left. 9. Who wrote The Wealth of Nations? A) Alexander Hamilton. B) Thomas Malthus. C) Karl Marx. D) Adam Smith. Show Answer Correct Answer: D) Adam Smith. 10. When a shoe manufacturer doubles all factors of production output more than doubles. Which economic concept does this illustrate? A) Diseconomies of scale. B) Economies of scale. C) Opportunity cost. D) Increasing profits. Show Answer Correct Answer: B) Economies of scale. 11. When a worker has special training or education to perform a task A) Automation. B) Specialization. C) Ellimination. D) None of above. Show Answer Correct Answer: B) Specialization. 12. What is an example of the purchase of a capital good? A) A farm owner purchasing additional land. B) A farm owner purchasing a television. C) A farm owner purchasing a tractor. D) A farm worker purchasing some seeds. Show Answer Correct Answer: C) A farm owner purchasing a tractor. 13. Tradeoffs, Opportunity costs, marginal costs, marginal benefits, and personal priorities are all important to consider when A) Dealing with fiscal policy. B) Using credit. C) Making a rational economic choice. D) Responding to monetary policy. Show Answer Correct Answer: C) Making a rational economic choice. 14. Concentration of economic activity on the production of a few particular goods or services is A) Comparative advantage. B) Specialization. C) Utility. D) Diminishing returns. Show Answer Correct Answer: B) Specialization. 15. The human factor of production is A) Capital. B) Land. C) Labor. D) All of these. Show Answer Correct Answer: C) Labor. 16. When you make a choice, you often have to give up other options ..... those things are called the ..... A) Misused Resources. B) Opportunity Cost. C) Missed Opportunities. D) Scarce Options. Show Answer Correct Answer: B) Opportunity Cost. 17. A person bought a shop and stocked it with fresh fruit. He employed one member of his family to help in the shop. Which factors of production have been used? A) Labor and capital only. B) Land and labor only. C) Labor, capital and enterprise. D) Land, labor, capital and enterprise. Show Answer Correct Answer: D) Land, labor, capital and enterprise. 18. Which would not be classified by economists as land? A) Two thousand acres of forest. B) A hydroelectric dam. C) Crude oil reserves. D) Iron ore deposits. Show Answer Correct Answer: B) A hydroelectric dam. 19. Why is NNP used in economics? A) To measure how successful a nation is at maintaining minimum production standard. B) It is a more detailed version of GNP. C) To measure how much a nation produces goods and services as a whole, only. D) To measure Depreciation. Show Answer Correct Answer: A) To measure how successful a nation is at maintaining minimum production standard. 20. An example of labor. A) Chef. B) Tree. C) Tractor. D) Programming computers. Show Answer Correct Answer: D) Programming computers. 21. If a point lies on the curve this means the company is being efficient. If a point lies inside the curve, this tells the company what? A) They are being over efficient. B) They are not efficient. C) It is impossible. D) None of the above. Show Answer Correct Answer: B) They are not efficient. 22. These costs are calculate by diving the cost by the output A) Variable Cost. B) Average Cost. C) Total Cost. D) Fixed Cost. Show Answer Correct Answer: B) Average Cost. 23. What are tangible objects that can be purchased? A) Products. B) Services. C) Objects. D) Goods. Show Answer Correct Answer: D) Goods. 24. A delivery truck A) Natural Resource. B) Entrepreneurship. C) Capital Resource. D) Human Resource. Show Answer Correct Answer: C) Capital Resource. 25. What would be classified as the factor of production capital for an airline? A) The shares of the airline quoted on the stock market. B) The money the airline keeps in the bank. C) The aircraft operated by the airline. D) The pilots the airline uses. Show Answer Correct Answer: C) The aircraft operated by the airline. 26. All natural resources that go into production of a good and services A) Labor. B) Land. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: B) Land. 27. A computer is an example of A) Land. B) Labour. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: D) Capital. 28. The following are examples of customers' basic needs. A) Water and shelter. B) Iced Tea. C) Laptop and smart phones. D) Expensive bags. Show Answer Correct Answer: A) Water and shelter. 29. Which of the following involves using resources to produce the maximum amount of goods and services? A) Overefficiency. B) Underutilization. C) Efficiency. D) Utilzation. Show Answer Correct Answer: C) Efficiency. 30. If the current productivity level of workers in your business is 20 shoes per worker, which answer describes a higher productivity level than the current level? A) 2 workers produce 10 shoes. B) 2 workers produce 40 shoes. C) 1 worker produces 7 shoes. D) 1 worker produces 21 shoes. Show Answer Correct Answer: D) 1 worker produces 21 shoes. ← 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 8Production Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books