This quiz works best with JavaScript enabled. Home > Economics > Production Economics – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 19 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the cause of the economic problem facing all countries? A) A.Climate change and global warming. B) Uneven distribution of income and wealth. C) Significant quantities of unemployed resources. D) Unlimited wants in relation to limited resources. Show Answer Correct Answer: D) Unlimited wants in relation to limited resources. 2. Unlimited wants and or needs describes what economic concept? A) Economy. B) Factors of Production. C) Resources. D) Scarcity. Show Answer Correct Answer: D) Scarcity. 3. When marginal cost is below average cost.. A) Average cost will be rising. B) Average cost will be falling. C) Marginal cost will be negative. D) Average cost will be the same as maginal cost. Show Answer Correct Answer: B) Average cost will be falling. 4. Gold, trees, coal, oil are examples of which factor of production? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: A) Land. 5. What is Depreciation? A) Inflation. B) Taxes. C) Capital Consumption Allowance (CCA). D) All of the above. Show Answer Correct Answer: C) Capital Consumption Allowance (CCA). 6. Name the 3 factors of production. A) Opportunity costs, natural resources, labor. B) Trade off, natural resources, labor. C) Natural resources, human resources, capital resources. D) Natural resources, human capital, scarcity. Show Answer Correct Answer: C) Natural resources, human resources, capital resources. 7. The opportunity cost of building a new high school is: A) The expense of hiring more teachers for the new high school. B) The expense of new desks, chalkboards and books for the new high school. C) Other goods and services, which must now be sacrificed to build the new high school. D) Overcrowded classrooms. Show Answer Correct Answer: C) Other goods and services, which must now be sacrificed to build the new high school. 8. A PPC shows, A) The best combination of goods to produce. B) The plans for increasing output in the short run. C) What can be produced with various combinations of resources. D) Resources are constrained by choices. Show Answer Correct Answer: C) What can be produced with various combinations of resources. 9. A Factory Worker is an example of ..... A) Natural Resources. B) Human Resources. C) Capital Resources. D) Entrepreneurship. Show Answer Correct Answer: B) Human Resources. 10. To a student, pencil and paper would be considered a ..... resource. A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 11. This is the factor of production that is motivated to take a risk by combining the factors of production. A) Entrepreneur. B) Human Resources. C) Physical Capital. D) Natural Resouces. Show Answer Correct Answer: A) Entrepreneur. 12. A garbage truck driver is an example of which Factor of Production? A) Labor. B) Land. C) Entrepreneurship. D) Capital. Show Answer Correct Answer: A) Labor. 13. AN ENTREPRENEUR IS A PERSON WHO ..... A) Owns their own business. B) Uses goods and services to produce labor, land, and capital. C) Use land, labor, and capital to produce good and services. D) Loves nature and runs a business. Show Answer Correct Answer: C) Use land, labor, and capital to produce good and services. 14. In economics, the value of the next best alternative is called ..... A) Scarcity. B) Productivity. C) Opprotunity Cost. D) Supply and Demand. Show Answer Correct Answer: C) Opprotunity Cost. 15. ..... is a function of inputs. A) Raw Materials. B) Output. C) Production Function. D) Labour. Show Answer Correct Answer: B) Output. 16. What is the term for doing work for others in exchange for pay? A) Jobs. B) Secret. C) Socialism. D) Service. Show Answer Correct Answer: D) Service. 17. What is the difference between a shortage and scarcity? A) Scarcity always exists. B) Scarcity results from falling prices. C) Scarcity concerns a single item. D) There is no real difference. Show Answer Correct Answer: A) Scarcity always exists. 18. What is the productivity level of 4 workers that produce a total of 20 shirts? A) 100 shirts per worker. B) 20 shirts per worker. C) 5 shirts per worker. D) 4 shirts per worker. Show Answer Correct Answer: C) 5 shirts per worker. 19. The total revenue of a business is: A) The same as profit. B) Equal to total costs. C) Quantity of units produced times unit production cost. D) Quantity of units sold multiplied by the sellingprice. Show Answer Correct Answer: D) Quantity of units sold multiplied by the sellingprice. 20. The term, "labor" means: A) Work the people do to produce goods and services. B) The natural resources used to produce goods or services. C) Person who organizes the factors of production to produce goods/services; business owners. D) Goods not created for their own use, but to make other goods/services. Show Answer Correct Answer: A) Work the people do to produce goods and services. ← 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