Production Economics Quiz 2 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Harvesting less corn than the land is capable of producing is an example of

Correct Answer: D) Underutilization.

2. The most basic economic problem that forces us to make choices is .....

Correct Answer: D) Scarcity.

3. Total Revenue - Total Cost = .....

Correct Answer: A) Profit.

4. What is a risk an entrepreneur takes in running a business?

Correct Answer: D) All of these are risks!.

5. What is not a reason for the decline in manufacturing industries in developed economies in recent years?

Correct Answer: B) Invention of automated production methods.

6. Bill Gates is an example of .....

Correct Answer: C) An Entrepreneurs.

7. Profit is equal to:

Correct Answer: B) Total revenue - Total cost.

8. The short run is a time period

Correct Answer: C) In which there is at least 1 fixed factor.

9. Anything within the production process, whether human or technological, that makes production more efficient

Correct Answer: B) Capital.

10. Objects that can be purchased.

Correct Answer: A) Goods.

11. In the SHORT RUN, what is true?

Correct Answer: C) If inputs are increased, output will expand by a diminishing amount.

12. Buisness owner, starts and runs the buisness

Correct Answer: A) Entrepreneur.

13. In which of the following situations would a business be wise to shut its factory?

Correct Answer: C) When fixed costs exceed revenue.

14. These are the things we desire to have.

Correct Answer: A) Wants.

15. Which is not an example of land?

Correct Answer: B) Saw.

16. A steel factory is an example of

Correct Answer: D) Capital.

17. ..... IS KNOWN AS THE MANMADE RESOURCES USED TO PRODUCE GOODS AND SERVICES.

Correct Answer: B) Capital.

18. Two farmers are picking apples on a farm and placing them on the bed of a truck. This is an example of which factor of production(s)?

Correct Answer: D) Land, labor, and capital.

19. The knowledge a taxi driver uses to navigate the city is an example of

Correct Answer: C) Capital.

20. When is a firm considered more capital-intensive than another firm?

Correct Answer: A) When it has a lower ratio of workers to machines than the other firm.