This quiz works best with JavaScript enabled. Home > Agriculture > Economics > Production > Production Economics – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which economic system is based on economic decisions being made by traditions and cultures? A) Market. B) Traditional. C) Command. D) Mixed. Show Answer Correct Answer: B) Traditional. 2. What are the three economic questions? A) What to produce? How to produce? For whom to produce?. B) Who to produce? Why you produce? Like to produce?. C) Why to produce? Tell who to produce? Things to produce?. D) None of above. Show Answer Correct Answer: A) What to produce? How to produce? For whom to produce?. 3. Variable Cost/Quantity = ..... A) Average Variable Cost. B) Marginal Variable Cost. C) Average Fixed Cost. D) Marginal Total Cost. Show Answer Correct Answer: A) Average Variable Cost. 4. A natural resource was discovered in a country. The exploitation of this resource allowed the country to double its gross domestic product within ten years. Why did this not solve the basic economic problem? A) Exploiting the resource required high expenditure on capital equipment. B) Exploiting the resource caused significant environmental damage. C) Wants still exceeded the resources available to meet those wants. D) Gross domestic product was unevenly distributed in the country. Show Answer Correct Answer: C) Wants still exceeded the resources available to meet those wants. 5. The people who work in both the public and private sector A) Land. B) Labor. C) Entrepreneurahip. D) Capital. Show Answer Correct Answer: B) Labor. 6. What does the saying "There Ain't No Such Thing As A Free Lunch" mean? A) Some things cost nothing. B) Most things have a cost. C) Most things cost nothing. D) Everything costs something. Show Answer Correct Answer: D) Everything costs something. 7. Which items are allowed in production output based on Islam? A) Magazines which are entertainment-oriented and gossip. B) Clothing degrading someone. C) Cough medicines and painkillers. D) The video shows the violent action. Show Answer Correct Answer: C) Cough medicines and painkillers. 8. All the units of a product produced in a give period of time is called ..... A) Average Product. B) Total Product. C) Marginal Product. D) None of these. Show Answer Correct Answer: B) Total Product. 9. A company supplying water spent $ 470 million creating a network of pipes to distribute water more efficiently. It employed local workers and boosted the local economy. It also provided better facilities for the tourist industry. What cannot be concluded from the above? A) There were positive externalities. B) There was a decrease in regional unemployment. C) There were fixed costs of $ 470 million. D) The company increased its profits. Show Answer Correct Answer: D) The company increased its profits. 10. Alyssa is planning to open a small clothing business. Which of the following represents capital needed to start such a business? A) People hired to sew the clothes together. B) Money. C) The sewing machines used to put the clothes together. D) Chalk for the chalk sticks used to mark clothes. Show Answer Correct Answer: C) The sewing machines used to put the clothes together. 11. Economics is the study of ..... A) Money. B) Choices. C) The Government. D) Chicken. Show Answer Correct Answer: B) Choices. 12. Which of the following are assumptions underlying the PPC? A) Only two goods are produced. B) Technology, population, and capital are variable. C) Prices determine the position on the PPC. D) All the above. Show Answer Correct Answer: A) Only two goods are produced. 13. Iron, minerals, coal and plants are examples of which factor of production? A) Natural Resources/Land. B) Labor. C) Entrepreneurship. D) Capital. Show Answer Correct Answer: A) Natural Resources/Land. 14. Fixed costs ..... A) Do not change in relation to the volume of production. B) Labour costs overtime. C) Fuel costs delivery van. D) Rise less than proportional to. Show Answer Correct Answer: A) Do not change in relation to the volume of production. 15. What type of factor of production is a road? A) Capital. B) Land. C) Labor. D) Enterprise. Show Answer Correct Answer: A) Capital. 16. The perpetual problem in economics is: A) The inability of people to work together effectively. B) The inability to satisfy everyone's wants with the resources available. C) The gap between the income of the rich and the poor. D) How to supply enough to earn a consistent profit. Show Answer Correct Answer: B) The inability to satisfy everyone's wants with the resources available. 17. What is likely to happen when the rate of interest increases? A) Savers earn lower rewards. B) Firms buy fewer machines. C) Consumer spending increases. D) People hold more cash. Show Answer Correct Answer: B) Firms buy fewer machines. 18. The addition of new resources often enables a nation to A) Produce more goods and services. B) Produce less goods and services. C) Produce more goods but fewer services. D) Produce fewer goods but more services. Show Answer Correct Answer: A) Produce more goods and services. 19. Labor is defined as ..... . A) The human activity involved in production. B) The employees in an office. C) The workers on the factory floor. D) The population available for work. Show Answer Correct Answer: A) The human activity involved in production. 20. When "wants are greater than the resources available to satisfy them, " it is called ..... A) Scarcity. B) Needs. C) Opportunity Cost. D) None of these answers. Show Answer Correct Answer: A) Scarcity. 21. Which of the following is a free good? A) Products given away by a supermarket to attract customers. B) Recycled paper. C) Inoculation provided without charge by the state. D) Wind coming from the sea. Show Answer Correct Answer: D) Wind coming from the sea. 22. Natural resources come from A) Nature and are limited. B) Nature and are unlimited. C) A factory and we can make more. D) None of above. Show Answer Correct Answer: A) Nature and are limited. 23. What is an entrepreneur? A) A worker in a factory. B) A student in college. C) A person who starts a new business. D) A leader of a country. Show Answer Correct Answer: C) A person who starts a new business. 24. A person who purchases a good or service A) Supply. B) Taxes. C) Good. D) Consumer. Show Answer Correct Answer: D) Consumer. 25. The best definition of productivity is: A) Total output/total input. B) The total amount produced by a business. C) Total inputs/ total outputs. D) How efficient a firm is. Show Answer Correct Answer: A) Total output/total input. 26. When the demand for cultural services and leisure increases, it will adversely affect the demand for ..... A) Luxuries only. B) Material comfort and luxuries of life. C) Material comfort only. D) Social needs only. Show Answer Correct Answer: A) Luxuries only. 27. What are the gifts of nature that make production possible? A) Input. B) Human capital. C) Natural resources. D) Consumer goods. Show Answer Correct Answer: C) Natural resources. 28. Which of these is not a decision which is made to solve the basic economic problem? A) Why to produce. B) What to produce. C) How to produce. D) For whom to produce. Show Answer Correct Answer: A) Why to produce. 29. WHAT ARE THE 4 FACTORS OF PRODUCTION? A) Land, Capital, Need & Want. B) Land, Labor, Capital, Entrepreneurs. C) Water, Air, Food & Shelter. D) Land, Capital, Good & Service. Show Answer Correct Answer: B) Land, Labor, Capital, Entrepreneurs. 30. Why will scarcity continue to be a problem in the future? A) World population will fall. B) Wants will continue to increase. C) Price will rise. D) The quantity of resources will decline. Show Answer Correct Answer: B) Wants will continue to increase. ← 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 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books