This quiz works best with JavaScript enabled. Home > Economics > Production > Production Economics – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... an addition to the total production by the employment of an extra unit of a factor. A) Average Product. B) Total Product. C) Marginal Product. D) Output. Show Answer Correct Answer: C) Marginal Product. 2. The amount a firm receives after all costs have been paid. A) Revenue. B) Marginal Profit. C) Profit. D) Marginal Revenue. Show Answer Correct Answer: C) Profit. 3. Which factor of production completes the excerpt:" ..... are a vital engine of economic development creating some of the largest firms in the world as well as small businesses. ..... prosper in economies where they have the freedom to start businesses and buy resources freely." A) Land. B) Labor. C) Capital. D) Entrepreneur. Show Answer Correct Answer: D) Entrepreneur. 4. Kelly makes and sells quilted blankets out of her home. She charges $ 50 per blanket. For each blanket she makes, she must spend $ 1 on thread, $ 2 in electricity and $ 12 on cloth. This month she made and sold 15 blankets. What is Kelly's total COST? A) $ 25. B) $ 225. C) $ 525. D) $ 750. Show Answer Correct Answer: B) $ 225. 5. All of the things that a company needs to make their products are called ..... A) Economics. B) Human resources. C) Capital resources. D) Factors of production. Show Answer Correct Answer: D) Factors of production. 6. What is the reward to land? A) Wages. B) Capital. C) Rent. D) Interest. Show Answer Correct Answer: C) Rent. 7. In the acronym GDP, the P stands for A) Possibility. B) Probabilty. C) Product. D) Percentage. Show Answer Correct Answer: C) Product. 8. Private multinational clothing companies operate in developing countries to reduce their average costs of production. Which feature of developing countries attracts them for this purpose? A) In developing countries, clothing workers receive low wages. B) In developing countries, foreign managers are allowed to pay no income tax. C) In developing countries, multinationals are allowed to take profits out of the country. D) In developing countries, there is a large market for fashion clothing. Show Answer Correct Answer: A) In developing countries, clothing workers receive low wages. 9. Heavy machinery A) Capital. B) Entrepreneurship. C) Land. D) Labor. Show Answer Correct Answer: A) Capital. 10. If a mass immigration occurs, the production possibilities curve can shift A) No shift. B) To the left. C) To the right. D) Outward on one axis only. Show Answer Correct Answer: C) To the right. 11. A person who uses and buys goods and services A) Money. B) Producer. C) Consumer. D) Economics. Show Answer Correct Answer: C) Consumer. 12. What are the four factors of production? A) Land, labor, capital, and entrepreneurship. B) Land, labor, money, and entrepreneurship. C) Resources, labor, capital, and entrepreneurship. D) Resources, labor, money, and entrepreneurship. Show Answer Correct Answer: A) Land, labor, capital, and entrepreneurship. 13. Input costs that may not have a direct outlay of money but rather an opportunity cost: A) Fixed Cost. B) Variable Cost. C) Implicit Cost. D) Explicit Cost. Show Answer Correct Answer: C) Implicit Cost. 14. If a natural disaster strikes, the production possibilities curve can shift A) No shift. B) To the left. C) To the right. D) Outward on one axis only. Show Answer Correct Answer: B) To the left. 15. Who wrote The Wealth of Nations? A) Alexander Hamilton. B) Thomas Malthus. C) Karl Marx. D) Adam Smith. Show Answer Correct Answer: D) Adam Smith. 16. Rent is a: A) Fixed expense. B) Discretionary Expense. C) Variable expense. D) Intermittent expense. Show Answer Correct Answer: A) Fixed expense. 17. When a shoe manufacturer doubles all factors of production output more than doubles. Which economic concept does this illustrate? A) Diseconomies of scale. B) Economies of scale. C) Increasing profits. D) Opportunity cost. Show Answer Correct Answer: B) Economies of scale. 18. When a worker has special training or education to perform a task A) Automation. B) Specialization. C) Ellimination. D) None of above. Show Answer Correct Answer: B) Specialization. 19. What is an example of the purchase of a capital good? A) A farm owner purchasing additional land. B) A farm owner purchasing a television. C) A farm owner purchasing a tractor. D) A farm worker purchasing some seeds. Show Answer Correct Answer: C) A farm owner purchasing a tractor. 20. Tradeoffs, Opportunity costs, marginal costs, marginal benefits, and personal priorities are all important to consider when A) Dealing with fiscal policy. B) Using credit. C) Making a rational economic choice. D) Responding to monetary policy. Show Answer Correct Answer: C) Making a rational economic choice. ← PreviousNext →Related QuizzesEconomics 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 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books