This quiz works best with JavaScript enabled. Home > Economics > Production Economics – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Land, labor, capital and entrepreneurship are the A) Basis of employment. B) Results of production. C) Factors of production. D) Results of supply and demand. Show Answer Correct Answer: C) Factors of production. 2. Which factor of production might include calculators for office work or tractors for a farming business? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 3. Things must remain assumed when looking at production possibilities. 1. no technological advances and 2 ..... A) All resources are being used and utilized efficiently. B) There is only one assumption. C) The boss must stay the same. D) All of the above. Show Answer Correct Answer: A) All resources are being used and utilized efficiently. 4. A group of farmers form a partnership. They buy more machinery which they share in the production of cereals. What is a benefit of using more machinery? A) It eliminates the need to train labour. B) It encourages more labour-intensive methods. C) It increases the productivity of each farmer. D) It reduces total capital costs of production. Show Answer Correct Answer: C) It increases the productivity of each farmer. 5. What identifies a finite resource? A) The resource does not renew itself. B) The supply of the resource is greater than demand. C) There is no opportunity cost for the resource. D) There is unlimited supply of the resource. Show Answer Correct Answer: A) The resource does not renew itself. 6. The difference between a good and a service is that: A) Goods are available in unlimited quantities and services are not. B) Services are available in unlimited quantities and goods are not. C) Goods are tangible and services are not. D) Goods help satisfy unlimited wants and services do not. Show Answer Correct Answer: C) Goods are tangible and services are not. 7. Hospital services are provided by the government and paid for through taxation. People cannot always get the treatment they require because of long waiting lists. Of what is this an example? A) External cost. B) Market system. C) Perfectly inelastic supply. D) Scarcity. Show Answer Correct Answer: D) Scarcity. 8. Which of the following is the best definition of economies of scale? A) Costs fall as output increases. B) Costs per unit fall as the firm expands. C) Average costs rise as the firm expands. D) Fixed costs fall as output increases. Show Answer Correct Answer: B) Costs per unit fall as the firm expands. 9. How should a Muslim man spend his money? A) He makes savings as gold and other jewels. B) He makes a demonstration for consumption. C) He spends all consumption to his needs without limit. D) He spends at first for his consumption to satisfy his needs. Show Answer Correct Answer: D) He spends at first for his consumption to satisfy his needs. 10. An example of scarcity. A) Air in Georgia. B) Water in the Ocean. C) Water in California. D) Shoes in footlocker. Show Answer Correct Answer: C) Water in California. 11. Which of the following is NOT used to calculate Net National Product (NNP)? A) GNP. B) Foreign manufacturers. C) Depreciation. D) Exports. Show Answer Correct Answer: B) Foreign manufacturers. 12. A period during which the amounts of all inputs can be changed is ..... A) The long run. B) The short run. C) Time period. D) Returns to scale. Show Answer Correct Answer: A) The long run. 13. Scenario:There is little competition among society because of proximity to others selling the same good.Which economic system has this stated advantage? A) Command. B) Market. C) Mixed. D) Traditional. Show Answer Correct Answer: D) Traditional. 14. Entrepreneurs are ..... A) People with all their efforts and abilities. B) Individuals who start a new business or bring a product to market. C) The "gifts of nature" or natural resources not created by human effort. D) The tools, equipment, and factories used in production of goods and services. Show Answer Correct Answer: B) Individuals who start a new business or bring a product to market. 15. The law of diminishing returns suggest that if a pizza shop hires one more cook, the marginal product of labor for the pizza shop will A) Increase at a decreasing rate. B) Increase at an increasing rate. C) Decrease. D) Not change. Show Answer Correct Answer: C) Decrease. 16. What do points outside of the PPF indicate? A) Unattainable combinations of goods. B) Ideal combinations of goods. C) Inefficient combinations of goods. D) None of above. Show Answer Correct Answer: A) Unattainable combinations of goods. 17. P x Q=?What is this the equation for? A) Total Cost. B) Total Production. C) Total Revenue. D) Total Output Price. Show Answer Correct Answer: C) Total Revenue. 18. Choose the effects of consumption on production summarized by Siddiqui. A) More resources would be allocated in the quantity of luxury goods demand. B) Increase the supply of labour. C) More resources would be allocated to the primary comforts of life. D) Fewer resources would be allocated for prohibited goods and services. Show Answer Correct Answer: C) More resources would be allocated to the primary comforts of life. 19. The equipment of the coffee shop to produce cups of coffee, are what kind of goods or products? A) Consumer goods. B) Either consumer goods or capital goods. C) Capital goods. D) Economic goods. Show Answer Correct Answer: C) Capital goods. 20. Which of the following best describes wants? A) Limited and ever changing. B) Unlimited and ever changing. C) Limited and never changes. D) Unlimited and never changes. Show Answer Correct Answer: B) Unlimited and ever changing. ← PreviousNext →Related QuizzesProduction Economics Quiz 1Production Economics Quiz 2Production Economics Quiz 3Production Economics Quiz 4Production Economics Quiz 5Production Economics Quiz 6Production Economics Quiz 7Production Economics Quiz 8Production Economics Quiz 9Production Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books