This quiz works best with JavaScript enabled. Home > Economics > Production Economics – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 22 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which factor of production is most affected by a hurricane destroying crops in Florida? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: A) Land. 2. A self-employed fortune teller earns a living by reading the palms of people's hands. Which factors of production are essential to this activity? A) A capital and enterprise. B) Enterprise and labour. C) Labour and land. D) Land and capital. Show Answer Correct Answer: B) Enterprise and labour. 3. A graphical representation of the alternative combinations of goods and services an economy can produce. A) Production Frontier Curve. B) Production Possibilities Frontier. C) Production Performance Curve. D) Production Alternative Frontier. Show Answer Correct Answer: B) Production Possibilities Frontier. 4. Which factor of production include any form of human effort exerted in production? A) Land. B) Labor. C) Capital. D) None of above. Show Answer Correct Answer: B) Labor. 5. The following items (accountant's computer, carpenter's drill, and a tailor's sewing machine) are all examples of which factor of production? A) Capital. B) Entrepreneurship. C) Land. D) Labor. Show Answer Correct Answer: A) Capital. 6. What is not enough supply or a very small supply? A) Demand. B) Supply. C) Scarcity. D) Competition. Show Answer Correct Answer: C) Scarcity. 7. Total Revenue - (Explicit +Implicit Costs)=?What is this the equation for? A) Total Cost. B) Economic Profit. C) Normal Profit. D) Marginal Profit. Show Answer Correct Answer: B) Economic Profit. 8. To be a successful entrepreneur requires a willingness to A) Play it safe. B) Borrow money. C) Take risks. D) Limit risks. Show Answer Correct Answer: C) Take risks. 9. What would an economist regard as an example of the factor of production capital? A) An individual's purchase of stocks and shares. B) The building of a new factory. C) Borrowing by a firm to pay for electricity. D) Total savings by individuals in a country. Show Answer Correct Answer: B) The building of a new factory. 10. What does an economist mean by the factor of production called capital? A) Goods that can be used to produce other goods. B) Money used to start a business. C) Money used to start a business. D) The profits of a company. Show Answer Correct Answer: A) Goods that can be used to produce other goods. 11. A Factor of Production is A) Used in the Production of things that are useful. B) Used in the production of goods and services. C) Used in the production of goods. D) Used in the production of services. Show Answer Correct Answer: B) Used in the production of goods and services. 12. Gold A) Natural Resource. B) Human Resource. C) Capital Resource. D) Entrepreneurship. Show Answer Correct Answer: A) Natural Resource. 13. Term for costs that change with production A) Fixed Cost. B) Average Cost. C) Variable Cost. D) Marginal Cost. Show Answer Correct Answer: C) Variable Cost. 14. What is a leading factor in predicting the life expectancy of a country? A) The production of a country. B) The amount of land of a country. C) The amount spent on healthcare for a country. D) The average temperature of a country. Show Answer Correct Answer: A) The production of a country. 15. The financial director of a company adds up the cost for the firm of rent, insurance, new machinery and the chief executive's basic salary. The director then divides that total by the firm's output. What has the director calculated? A) Average fixed cost. B) Average revenue. C) Average total cost. D) Average variable cost. Show Answer Correct Answer: A) Average fixed cost. 16. A short run production function is one in which- A) At least one factor is fixed. B) At least one factor is variable. C) All factors are fixed. D) All factors are variable. Show Answer Correct Answer: A) At least one factor is fixed. 17. Money used to re-invest in a firm and further its business objectives A) Human Capital. B) Physical Capital. C) Investment Capital. D) Enterprise Capital. Show Answer Correct Answer: C) Investment Capital. 18. Opportunity Cost is best defined as A) The value of the next best alternative that is given up due to the choice you made. B) The price you pay to purchase something. C) The benefit you gain by making a decision. D) The amount of debt you take on by making a decision. Show Answer Correct Answer: A) The value of the next best alternative that is given up due to the choice you made. 19. Which of the following is NOT one of the 4 Factors of Production? A) Land. B) Government. C) Labor. D) Capital. Show Answer Correct Answer: B) Government. 20. A plumber A) Natural Resource. B) Human Resource. C) Capital Resource. D) Entrepreneurship. Show Answer Correct Answer: B) Human Resource. ← 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