This quiz works best with JavaScript enabled. Home > Economics > Production > Production Economics – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Concentration of economic activity on the production of a few particular goods or services is A) Diminishing returns. B) Specialization. C) Comparative advantage. D) Utility. Show Answer Correct Answer: B) Specialization. 2. The human factor of production is A) Capital. B) Land. C) Labor. D) All of these. Show Answer Correct Answer: C) Labor. 3. When you make a choice, you often have to give up other options ..... those things are called the ..... A) Opportunity Cost. B) Missed Opportunities. C) Misused Resources. D) Scarce Options. Show Answer Correct Answer: A) Opportunity Cost. 4. A person bought a shop and stocked it with fresh fruit. He employed one member of his family to help in the shop. Which factors of production have been used? A) Labor and capital only. B) Land and labor only. C) Labor, capital and enterprise. D) Land, labor, capital and enterprise. Show Answer Correct Answer: D) Land, labor, capital and enterprise. 5. Which would not be classified by economists as land? A) Two thousand acres of forest. B) A hydroelectric dam. C) Crude oil reserves. D) Iron ore deposits. Show Answer Correct Answer: B) A hydroelectric dam. 6. Why is NNP used in economics? A) To measure how successful a nation is at maintaining minimum production standard. B) It is a more detailed version of GNP. C) To measure how much a nation produces goods and services as a whole, only. D) To measure Depreciation. Show Answer Correct Answer: A) To measure how successful a nation is at maintaining minimum production standard. 7. An example of labor. A) Tractor. B) Programming computers. C) Tree. D) Chef. Show Answer Correct Answer: B) Programming computers. 8. If a point lies on the curve this means the company is being efficient. If a point lies inside the curve, this tells the company what? A) They are being over efficient. B) They are not efficient. C) It is impossible. D) None of the above. Show Answer Correct Answer: B) They are not efficient. 9. These costs are calculate by diving the cost by the output A) Fixed Cost. B) Average Cost. C) Total Cost. D) Variable Cost. Show Answer Correct Answer: B) Average Cost. 10. What are tangible objects that can be purchased? A) Goods. B) Services. C) Products. D) Objects. Show Answer Correct Answer: A) Goods. 11. A delivery truck A) Natural Resource. B) Human Resource. C) Capital Resource. D) Entrepreneurship. Show Answer Correct Answer: C) Capital Resource. 12. What would be classified as the factor of production capital for an airline? A) The aircraft operated by the airline. B) The money the airline keeps in the bank. C) The pilots the airline uses. D) The shares of the airline quoted on the stock market. Show Answer Correct Answer: A) The aircraft operated by the airline. 13. All natural resources that go into production of a good and services A) Labor. B) Land. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: B) Land. 14. A computer is an example of A) Land. B) Labour. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: D) Capital. 15. The following are examples of customers' basic needs. A) Water and shelter. B) Iced Tea. C) Laptop and smart phones. D) Expensive bags. Show Answer Correct Answer: A) Water and shelter. 16. Which of the following involves using resources to produce the maximum amount of goods and services? A) Utilzation. B) Underutilization. C) Efficiency. D) Overefficiency. Show Answer Correct Answer: C) Efficiency. 17. If the current productivity level of workers in your business is 20 shoes per worker, which answer describes a higher productivity level than the current level? A) 1 worker produces 7 shoes. B) 2 workers produce 10 shoes. C) 2 workers produce 40 shoes. D) 1 worker produces 21 shoes. Show Answer Correct Answer: D) 1 worker produces 21 shoes. 18. Fixed Cost divided by the quantity of output. A) Average Fixed Cost. B) Average Variable Cost. C) Marginal Cost. D) Marginal Fixed Cost. Show Answer Correct Answer: A) Average Fixed Cost. 19. Anything used to produce a good or service is ..... A) Labor. B) Factor of Production. C) Capital. D) A change in elasticity. Show Answer Correct Answer: B) Factor of Production. 20. The Chromebooks you are using are examples of A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: D) Capital. ← 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