This quiz works best with JavaScript enabled. Home > Economics > Production Economics – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Formula for Marginal Product (MP) is: A) $ \frac{\Delta TP}{\Delta Q_{input}}$. B) $ \frac{TP}{Q_{input}}$. C) $ \frac{Q_{input}}{Total\ product}$. D) $ \frac{Change\ in\ Quality}{Change\ in\ price}$. Show Answer Correct Answer: A) $ \frac{\Delta TP}{\Delta Q_{input}}$. 2. Factory worker A) Natural. B) Labor. C) Capital. D) ????????. Show Answer Correct Answer: B) Labor. 3. Assembly line worker A) Land. B) Entrepreneurship. C) Capital. D) Labor. Show Answer Correct Answer: D) Labor. 4. Which change will make a manufacturing company replace labour with capital to maintain the most efficient combination of factors of production? A) The price of machinery has increased. B) The productivity of labour has increased. C) The productivity of machinery has increased. D) The supply of labour has increased. Show Answer Correct Answer: C) The productivity of machinery has increased. 5. An economic system where the government and individuals decide how to use their resources is which of the following? A) Mixed. B) Command. C) Market. D) Traditional. Show Answer Correct Answer: A) Mixed. 6. What would be classified by an economist as the factor of production known as land? A) A discovery of oil in the South China sea. B) An oil rig bought by an oil company. C) Money held by the oil companies in their bank accounts. D) The productivity of oil workers. Show Answer Correct Answer: A) A discovery of oil in the South China sea. 7. Oil is an example of A) Natural Resources. B) Human Resources. C) Capital Resources. D) Entrepreneurship. Show Answer Correct Answer: A) Natural Resources. 8. If a firm does not produce any output, its total cost is equal to A) Zero. B) Its fixed costs. C) Its variable costs. D) Its marginal cost. Show Answer Correct Answer: B) Its fixed costs. 9. If the production of good X increases by 3 units and production of good Y decreases by one unit, then the opportunity cost of one unit of X is ..... unit(s) of Y. A) 3. B) 1. C) 1/3. D) 4. Show Answer Correct Answer: C) 1/3. 10. Which of the following are all considered to be land? A) Factories, buildings, workers, bees. B) Corn fields, tractors, computers, rakes. C) Dams, bridges, gravel pits, oil wells. D) Natural gas, coal, trees, water. Show Answer Correct Answer: D) Natural gas, coal, trees, water. 11. All the people who have jobs or are looking for a job A) Labor force. B) Employed. C) Division of labor. D) None of above. Show Answer Correct Answer: A) Labor force. 12. At an output of 25 units, a firm's total cost is $ 250. If that firm's average variable cost is $ 4 per unit, what is its total fixed cost? A) $ 100. B) $ 150. C) $ 10. D) $ 5. Show Answer Correct Answer: B) $ 150. 13. To make cars, you use machines; these are ..... A) Human resources. B) Natural resources. C) Factors of production. D) Capital resources. Show Answer Correct Answer: D) Capital resources. 14. ATC x ..... =TC A) Variable Cost. B) Quantity. C) Price. D) None of the Above. Show Answer Correct Answer: B) Quantity. 15. What is the basic problem facing all economies? A) How to achieve a stable balance of payments. B) How to maximise tax revenues. C) How to reach full employment. D) How to use scarce resources. Show Answer Correct Answer: D) How to use scarce resources. 16. Total Product is A) The Quality of Input. B) The Quality of Output. C) The Quantity of Output. D) The Quantity of Input. Show Answer Correct Answer: C) The Quantity of Output. 17. All of the economic inputs that are required to produce goods and services are called: A) Factors of production. B) Supply. C) Demand. D) Capital for goods. Show Answer Correct Answer: A) Factors of production. 18. In recent years more golf courses, which use large quantities of water, have opened in China. What may be the opportunity cost of this? A) Cost of water. B) Loss of farmland. C) Sales of golf equipment. D) Wages of golf course staff. Show Answer Correct Answer: B) Loss of farmland. 19. The physical development of a country including roads, ports, utilities A) Land. B) Labor. C) Infrastructure. D) Entrepreneurship. Show Answer Correct Answer: C) Infrastructure. 20. All of the things necessary for production are known as: A) Production. B) Entrepreneurship. C) Outputs. D) Resources. Show Answer Correct Answer: D) Resources. ← PreviousNext →Related QuizzesProduction Economics Quiz 1Production Economics Quiz 2Production Economics Quiz 4Production Economics Quiz 5Production Economics Quiz 6Production Economics Quiz 7Production Economics Quiz 8Production Economics Quiz 9Production Economics Quiz 10Production Economics Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books