This quiz works best with JavaScript enabled. Home > Economics > Production Economics – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Marginal product curve and the average product curve intersect ..... A) At the maximum point of the marginal product curve. B) Where total product is at a maximum. C) Where marginal product equals zero. D) At the maximum point of the average product curve. Show Answer Correct Answer: B) Where total product is at a maximum. 2. The introduction of robots has meant that many firms now require fewer workers to produce their goods and services. According to this statement, which factor of production is replacing workers? A) Capital. B) Enterprise. C) Labour. D) Land. Show Answer Correct Answer: A) Capital. 3. The production possibilities curve is an illustration of what? A) Opportunity costs and trade-offs. B) Only opportunity costs. C) Only trade-offs. D) None of the above. Show Answer Correct Answer: A) Opportunity costs and trade-offs. 4. Long run production function means ..... A) Some factors are variable. B) Some factors are constant. C) Some factors are variable and some are constant. D) All the factors are variable. Show Answer Correct Answer: D) All the factors are variable. 5. ..... IS KNOWN AS THE NATURAL RESOURCES USED TO PRODUCE GOODS AND SERVICES A) Entrepreneurs. B) Capital. C) Labor. D) Land. Show Answer Correct Answer: D) Land. 6. Why are the factors of production important? A) They are not important. B) They are resources we get from the land. C) They give us what we want. D) They are the building blocks of the economy and are used to produce goods and services. Show Answer Correct Answer: D) They are the building blocks of the economy and are used to produce goods and services. 7. Which factor of production can a firm change in the short run? A) Labor. B) Land. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: A) Labor. 8. What is the process of using natural resources or goods and services? A) Production. B) Consumption. C) Distribution. D) None of above. Show Answer Correct Answer: B) Consumption. 9. Natural Resources/Land, Labor, Capital, and Entrepreneurship are the four main categories of .....? A) Economics. B) Infrastructure. C) Factors of Production. D) Factors of Bricklandia. Show Answer Correct Answer: C) Factors of Production. 10. Forests are examples of ..... A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: A) Land. 11. Use the following two statements to answer this question:I. Production functions describe what is technically feasible when the firm operates efficiently.II. The production function shows the least cost method of producing a given level of output. A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false. Show Answer Correct Answer: B) I is true, and II is false. 12. What do points inside the PPF indicate? A) The combination of goods that employ goods efficiently. B) The combination of goods that employ resources fully. C) The combination of goods that do not employ resources fully. D) None of above. Show Answer Correct Answer: C) The combination of goods that do not employ resources fully. 13. What is the main problem in economics? A) Scarcity. B) Shortage. C) Choices. D) Unemployment. Show Answer Correct Answer: A) Scarcity. 14. Difference between wants and needs and available resources A) Economy. B) Factors of Production. C) Resources. D) Scarcity. Show Answer Correct Answer: D) Scarcity. 15. The people who decide to buy. A) Producers. B) Consumers. C) Economist. D) Entreprenuers. Show Answer Correct Answer: B) Consumers. 16. Sum of the fixed cost and variable costs A) Average Cost. B) Total Cost. C) Marginal Cost. D) Variable Cost. Show Answer Correct Answer: B) Total Cost. 17. Which of the following is an example of "services?" A) Mrs. Brickley gets her hair cut. B) Mrs. Brickley buys yarn at Michael's. C) Mrs. Brickley invents a new video game. D) Mrs. Brickley volunteers at the San Antonio Food Bank. Show Answer Correct Answer: A) Mrs. Brickley gets her hair cut. 18. What is the definition of production based on Kahf? A) Produce and manufacture such things which are quite essential for human lives. B) Fulfilment of one's own needs in moderation, family and future with contribute to cause of Allah. C) Man's effort to improve material condition and moral to obtain his goal in the hereafter. D) Process that transforms resources into finished goods to fulfil consumer's needs. Show Answer Correct Answer: C) Man's effort to improve material condition and moral to obtain his goal in the hereafter. 19. If Mr. Dawson is given a pay raise, what would be the most likely effect? A) A decrease in the cost of his labor. B) A decrease in the opportunity cost of quitting his job. C) An increase in his human capital. D) An increase in his standard of living. Show Answer Correct Answer: D) An increase in his standard of living. 20. Which of the following would be an example of a fixed cost on a farm? A) Mortgage on the land. B) Costs of seed. C) Fuel to operate machinery. D) Charge for fertilizer for the growing season. Show Answer Correct Answer: A) Mortgage on the land. ← PreviousNext →Related QuizzesProduction Economics Quiz 1Production Economics Quiz 2Production Economics Quiz 3Production Economics Quiz 4Production 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