This quiz works best with JavaScript enabled. Home > Agriculture > Economics > Production > Production Economics – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Fixed Cost divided by the quantity of output. A) Marginal Fixed Cost. B) Average Fixed Cost. C) Average Variable Cost. D) Marginal Cost. Show Answer Correct Answer: B) Average Fixed Cost. 2. Anything used to produce a good or service is ..... A) Labor. B) Factor of Production. C) A change in elasticity. D) Capital. Show Answer Correct Answer: B) Factor of Production. 3. The Chromebooks you are using are examples of A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: D) Capital. 4. In a competitive economy, which firms will have the most access to the factors of production (productive resources)? A) The firms that are most successful in meeting consumer demand. B) The firms that are least successful in meeting consumer demand. C) The firms that have the most production experience. D) The firms that offer the greatest variety of goods/services. Show Answer Correct Answer: A) The firms that are most successful in meeting consumer demand. 5. In which field of economics is NNP the MOST useful? A) Microeconomics. B) International Economics. C) Macroeconomics. D) Environmental Economics. Show Answer Correct Answer: D) Environmental Economics. 6. Which of the following is not a variable cost of owning a vehicle? A) Gas. B) Vehicle Registration. C) Air filters. D) Oil Change. Show Answer Correct Answer: B) Vehicle Registration. 7. Overconsumption is condemned in Islam and is termed israf which means ..... A) Spending in the wrong way. B) Spending in the prohibited activities. C) Spending the lawful matters such as food, clothes and shelter. D) Overspending on lawful matters such as food, clothes and shelter. Show Answer Correct Answer: D) Overspending on lawful matters such as food, clothes and shelter. 8. When people love a product, a business will increase the ..... A) Production. B) Consumption. C) Distribution. D) None of above. Show Answer Correct Answer: A) Production. 9. Considering all the questions above, it all comes down to ..... These are decisions we all must make due to scarcity. A) Incentive. B) Scarcity. C) Trade offs. D) Choice. Show Answer Correct Answer: D) Choice. 10. When there are not enough goods or services to satisfy the wants and needs of the people, this is known as ..... A) Nothingness. B) Scraps. C) Scarcity. D) Supply. Show Answer Correct Answer: C) Scarcity. 11. What is not a factor of production? A) A $ 20 banknote. B) An office. C) A secretary. D) A photocopier. Show Answer Correct Answer: A) A $ 20 banknote. 12. The human effort involved in the production of goods and services is known as: A) Capital. B) Entrepreneurship. C) Labor. D) Land. Show Answer Correct Answer: C) Labor. 13. Which of the following buys goods for personal use? A) Consumer. B) Advocate. C) Producer. D) Client. Show Answer Correct Answer: A) Consumer. 14. Scarcity is a basic economic problem because A) Resources are limited. B) Governments limit production. C) People have trouble making choices. D) Opportunity costs limit demand. Show Answer Correct Answer: A) Resources are limited. 15. Alyssa is planning to open a small clothing business. Which of the following represents the factor of production called labor? A) Chalk for the chalk sticks used to mark clothes. B) People hired to sew the clothes together. C) The sewing machines used to put the clothes together. D) Money. Show Answer Correct Answer: B) People hired to sew the clothes together. 16. Occurs when each addition of an input results in declining quantity of the output A) Diminishing Marginal Profits. B) Diminishing Marginal Returns. C) Diminishing Marginal Utility. D) Diminishing Marginal Costs. Show Answer Correct Answer: B) Diminishing Marginal Returns. 17. Which of the following would not shift an economy's PPC? A) A technological advance. B) An increase in population. C) Doubling the amount of capital in the economy. D) An increase in the money supply. Show Answer Correct Answer: D) An increase in the money supply. 18. The term for costs that cannot be avoided in the short run A) Fixed Cost. B) Total Cost. C) Variable Cost. D) Average Cost. Show Answer Correct Answer: A) Fixed Cost. 19. Which of the following is an example of "goods?" A) Mrs. Brickley starts her own business. B) Mrs. Brickley goes out to eat at Red Robin. C) Mrs. Brickley spends money on candles at Bath & Body Works. D) Mrs. Brickley gets her nails done at a nail salon. Show Answer Correct Answer: C) Mrs. Brickley spends money on candles at Bath & Body Works. 20. How many factors of production do we have? A) 6. B) 8. C) 5. D) 3. Show Answer Correct Answer: D) 3. 21. Which of the following describes an eventual decline in the productivity of factor inputs as additional units of variable factors are added to fixed resources? A) Law of diminishing total product. B) Law of diminishing marginal returns. C) Law of diminishing marginal utility. D) Laffer curve. Show Answer Correct Answer: B) Law of diminishing marginal returns. 22. Law of variable proportion is also called ..... A) The law of constant returns. B) The law of increasing returns. C) Long run production function. D) The law of diminishing returns. Show Answer Correct Answer: D) The law of diminishing returns. 23. The formula for Average cost is A) Total revenue/ output. B) Total Cost/ output. C) Output/total cost. D) Total Cost/ total revenue. Show Answer Correct Answer: B) Total Cost/ output. 24. ..... is equipment or goods (machinery, tools, factories, stores, vehicles, etc.) that are used to produce other goods and services. A) Production. B) Human resource. C) Natural resource. D) Capital resource. Show Answer Correct Answer: D) Capital resource. 25. David decides to start his own business. He opens a shop that manufactures sports equipment. He pays Frank an hourly wage to make baseball bats, and Gene a salary to manage his finances. Three days after his grand opening, he is ecstatic because Mike, who runs the town's parks and recreation department, calls him and orders equipment for six Little League baseball teams. Which of the following statements is TRUE? A) Davis is a producer, Frank is labor, Gene is the entrepreneur of the business, and Mike has just ordered capital goods. B) David is producer, Frank and Gene are consumers, and Mike has just made an investment. C) David is a the entrepreneur, Frank and Gene are both labor, and Mike is a consumer. D) Frank and Gene are both entrepreneurs, David is the owner, and Mike has just made a capital investment. Show Answer Correct Answer: C) David is a the entrepreneur, Frank and Gene are both labor, and Mike is a consumer. 26. Amanah is one of the most significant values in producer behavior since A) Widespread dishonesty may destroy the functional role of the market. B) Labor must be paid their wage once they have performed their work. C) Producers have absolute ownership over resources. D) Trust is a sufficient condition to ensure a maximum level of profit. Show Answer Correct Answer: A) Widespread dishonesty may destroy the functional role of the market. 27. In farming, what is an example of what economists call capital? A) The money the farmer set aside to pay taxes. B) Shares in a farming company. C) The tractor owned by the farmer. D) Savings the farmer has in the bank. Show Answer Correct Answer: C) The tractor owned by the farmer. 28. Why does scarcity exist? A) There are not sufficient resources to meet everyone's wants. B) Machines wear out in time. C) There is a limit to people's wants. D) Each year workers tend to produce less than previously. Show Answer Correct Answer: A) There are not sufficient resources to meet everyone's wants. 29. An economic principle which states that as production shifts from making one good or service to another, more resources are needed to increase production of the second good or service A) Production possibilities curve. B) Production possibilities frontier. C) Efficiency. D) Law of increasing costs. Show Answer Correct Answer: D) Law of increasing costs. 30. Which of the following would consumers MOST OFTEN need to consider when trying to make a rational economic decision? A) The impact of government subsidies. B) Net Exports. C) Potential opportunity costs. D) Factors of Productions. Show Answer Correct Answer: C) Potential opportunity costs. ← 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 7Production Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books