This quiz works best with JavaScript enabled. Home > Economics > Production Economics – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 20 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A factory worker is an example of which factor of production? A) Land/Natural Resources. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: B) Labor. 2. The study of how individuals, institutions, and scarcity make choices under the conditions of scarcity is A) Allocation. B) Scarcity. C) Economics. D) Specialization. Show Answer Correct Answer: C) Economics. 3. A farmer A) Natural. B) Labor. C) Capital. D) ????????. Show Answer Correct Answer: B) Labor. 4. What does marginal cost (MC) tell us? A) Is cost from fixed input. B) Is variable cost. C) The increase in output that arises from an additional unit of input. D) The increase in total cost that arises from producing an additional unit of output. Show Answer Correct Answer: C) The increase in output that arises from an additional unit of input. 5. Average variable cost (AVC) is A) Explicit costs. B) Variable cost divided by output. C) The increase in output that arises from an additional unit of input. D) Costs that do not vary with the quantity of output produced. Show Answer Correct Answer: B) Variable cost divided by output. 6. Which of the following statement is NOT true of variable cost? A) Total variable cost is zero when output is zero. B) Variable cost is paid for the use of variable factors. C) Total variable cost rises with a constant slope as output rises. D) Total cost rises as output rises. Show Answer Correct Answer: C) Total variable cost rises with a constant slope as output rises. 7. What is the process of making goods and services? A) Production. B) Distribution. C) Consumption. D) None of above. Show Answer Correct Answer: A) Production. 8. Scarcity requires people to make choices. Why? A) People have more wants than needs. B) There are not enough resources to make everything we want. C) Services are easier to get than goods. D) Producers rarely make enough of a good. Show Answer Correct Answer: B) There are not enough resources to make everything we want. 9. Which one of the following costs is most likely to be variable for a fast food restaurant? A) The salary of the manager. B) The rent of the restaurant. C) The cost of the food supplies. D) The machinery used to cook the food. Show Answer Correct Answer: C) The cost of the food supplies. 10. The iPad the waitress uses to take your order A) Natural Resource. B) Human Resource. C) Capital Resource. D) Entrepreneurship. Show Answer Correct Answer: C) Capital Resource. 11. The term used to describe the way a nation provides for the needs and wants of its people A) Resources. B) Economy. C) Factors of production. D) Infrastructure. Show Answer Correct Answer: B) Economy. 12. Land, labor, capital, and entrepreneurship A) Economy. B) Infrastructure. C) Factors of production. D) Capital. Show Answer Correct Answer: C) Factors of production. 13. Ray Kroc, the founder of the fast-food chain McDonald's, would be an example of this factor of production: A) Capital Goods. B) Human Capital. C) Entrepreneurship. D) Natural Resources. Show Answer Correct Answer: C) Entrepreneurship. 14. A synonym for labor A) Hard. B) Easy. C) Work. D) Fun. Show Answer Correct Answer: C) Work. 15. An oil company announced in 2015 that it was starting its drilling operations for oil deposits in the Arctic Ocean. What will be the effect of this? A) To increase the supply of raw materials. B) To reduce the level of technology available. C) To solve the economic problem. D) To worsen resource allocation. Show Answer Correct Answer: A) To increase the supply of raw materials. 16. What shape does a marginal cost curve take A) U shaped. B) Nike swoosh. C) Loop de loops. D) Logarithmic. Show Answer Correct Answer: B) Nike swoosh. 17. Doing work for others A) Service. B) Secret. C) Socialism. D) None of above. Show Answer Correct Answer: A) Service. 18. Which factor of production is the least mobile? A) Capital. B) Labor. C) Enterprise. D) Land. Show Answer Correct Answer: D) Land. 19. Any point on the Production Possibilities Frontier represents A) Underutilization. B) Unattainable Level of Production. C) A Tradeoff. D) Inefficiency. Show Answer Correct Answer: C) A Tradeoff. 20. What is the production possibilities curve? A) A graph that shows how efficient an economy can produce a combination of 2 goods. B) A graph that shows how much money something is. C) A graph that shows the opportunity a country has to give up in order to lose something else. D) A visual representation of how land, labor, capital, entrepreneurs are distributed. Show Answer Correct Answer: A) A graph that shows how efficient an economy can produce a combination of 2 goods. ← 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