This quiz works best with JavaScript enabled. Home > Economics > Production Economics – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In marketing strategy, Islamic producer should ..... A) Create barriers to entry. B) Follow the fair rules in all its dealing. C) Use the deceptive advertising to promote. D) Participate in lending or borrowing money at fixed price. Show Answer Correct Answer: B) Follow the fair rules in all its dealing. 2. Scenario:In country Z, people rarely exchange money for goods or services. They grow their own crops and raise their own livestock.Which economic system is being described? A) Command. B) Market. C) Mixed. D) Traditional. Show Answer Correct Answer: D) Traditional. 3. A bulldozer is an example of ..... A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: D) Capital. 4. The initiative and creativity to produce something new describes which factor of production? A) Land. B) Labor. C) Capital. D) Entrepreneur. Show Answer Correct Answer: D) Entrepreneur. 5. What is the term for a person who purchases goods and services for personal use? A) Demander. B) Consumer. C) Borrower. D) Supplier. Show Answer Correct Answer: B) Consumer. 6. Why would a producer want to increase the productivity of his/her workers? A) To increase costs. B) To decrease costs. C) To increase profits. D) To decrease profits. Show Answer Correct Answer: B) To decrease costs. 7. In which of the following situations would a business be wise to shut down (close) its factory? A) When revenue exceeds variable costs. B) When marginal costs exceed fixed costs. C) When fixed costs exceed revenue. D) When total costs exceed marginal costs. Show Answer Correct Answer: C) When fixed costs exceed revenue. 8. Production function shows the technological relationship between ..... A) Owner and Manager. B) Owner and Labor. C) Manager and Labor. D) Inputs and Output. Show Answer Correct Answer: D) Inputs and Output. 9. The best definition of fixed costs are those that do not vary with: A) Time. B) Seasons. C) Output. D) Number of workers. Show Answer Correct Answer: C) Output. 10. An example of natural resource. A) Trade off. B) Grill. C) Tractor. D) Tree. Show Answer Correct Answer: D) Tree. 11. The definition of Scarcity is ..... A) An unlimited amount of resources to meet limited wants and needs. B) A limited amount of resources to meet unlimited wants and needs. C) When people use time and energy to create events. D) A city where individuals commit themselves to unlimited wants and needs. Show Answer Correct Answer: B) A limited amount of resources to meet unlimited wants and needs. 12. As one of the factors of production/productive resources, capital can be defined as A) The goods and services a business produces. B) The supply of labor needed to produce goods. C) The people that purchase goods and services. D) The equipment and factories needed to produce goods. Show Answer Correct Answer: D) The equipment and factories needed to produce goods. 13. What is the term for the total supply of a specific good or service available to consumers? A) Scarcity. B) Demand. C) Interdependence. D) Supply. Show Answer Correct Answer: D) Supply. 14. An opportunity cost is A) The most desirable alternative given up as the result of a decision. B) Any good or service we barter for another good or service. C) The cost in dollars and time of any decision. D) A choice between two equally desirable goods or services. Show Answer Correct Answer: A) The most desirable alternative given up as the result of a decision. 15. Scarcity of resources forces nations, businesses and people to make A) Problems. B) Choices. C) Barters. D) Trades. Show Answer Correct Answer: B) Choices. 16. The United States decides what goods to produce by letting A) Only the government decide. B) The producers and the government decide. C) Only the producers decide. D) The producers and consumers decide. Show Answer Correct Answer: D) The producers and consumers decide. 17. Which of the following is a fixed cost for owning a vehicle? A) Gas. B) Oil Change. C) Tires. D) Car Payment. Show Answer Correct Answer: D) Car Payment. 18. A Pizza Oven is an example of ..... A) Natural Resources. B) Human Resources. C) Capital Resources. D) Entrepreneurship. Show Answer Correct Answer: C) Capital Resources. 19. Your garbage man is an example of A) Land. B) Labor. C) Entrepreneurship. D) Capital. Show Answer Correct Answer: B) Labor. 20. Capital in Economics is defined as ..... A) The man-made items used in production. B) The cash in bank a firm has. C) The amount borrowed by the firm. D) The amount invested in the firm. Show Answer Correct Answer: A) The man-made items used in production. ← PreviousNext →Related QuizzesProduction Economics Quiz 1Production Economics Quiz 2Production Economics Quiz 3Production Economics Quiz 4Production Economics Quiz 5Production Economics Quiz 6Production Economics Quiz 8Production Economics Quiz 9Production Economics Quiz 10Production Economics Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books