This quiz works best with JavaScript enabled. Home > Economics > Production > Production Economics – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a competitive economy, which firms will have the most access to the factors of production (productive resources)? A) The firms that are most successful in meeting consumer demand. B) The firms that are least successful in meeting consumer demand. C) The firms that have the most production experience. D) The firms that offer the greatest variety of goods/services. Show Answer Correct Answer: A) The firms that are most successful in meeting consumer demand. 2. In which field of economics is NNP the MOST useful? A) Microeconomics. B) Macroeconomics. C) International Economics. D) Environmental Economics. Show Answer Correct Answer: D) Environmental Economics. 3. Which of the following is not a variable cost of owning a vehicle? A) Gas. B) Oil Change. C) Vehicle Registration. D) Air filters. Show Answer Correct Answer: C) Vehicle Registration. 4. A wrench A) Natural Resource. B) Human Resource. C) Capital Resource. D) Entrepreneurship. Show Answer Correct Answer: C) Capital Resource. 5. Overconsumption is condemned in Islam and is termed israf which means ..... A) Spending in the wrong way. B) Spending in the prohibited activities. C) Spending the lawful matters such as food, clothes and shelter. D) Overspending on lawful matters such as food, clothes and shelter. Show Answer Correct Answer: D) Overspending on lawful matters such as food, clothes and shelter. 6. When people love a product, a business will increase the ..... A) Production. B) Consumption. C) Distribution. D) None of above. Show Answer Correct Answer: A) Production. 7. Considering all the questions above, it all comes down to ..... These are decisions we all must make due to scarcity. A) Trade offs. B) Scarcity. C) Choice. D) Incentive. Show Answer Correct Answer: C) Choice. 8. When there are not enough goods or services to satisfy the wants and needs of the people, this is known as ..... A) Scarcity. B) Nothingness. C) Scraps. D) Supply. Show Answer Correct Answer: A) Scarcity. 9. What is not a factor of production? A) A $ 20 banknote. B) An office. C) A photocopier. D) A secretary. Show Answer Correct Answer: A) A $ 20 banknote. 10. The human effort involved in the production of goods and services is known as: A) Capital. B) Entrepreneurship. C) Labor. D) Land. Show Answer Correct Answer: C) Labor. 11. Which of the following buys goods for personal use? A) Consumer. B) Producer. C) Advocate. D) Client. Show Answer Correct Answer: A) Consumer. 12. Scarcity is a basic economic problem because A) Resources are limited. B) Governments limit production. C) People have trouble making choices. D) Opportunity costs limit demand. Show Answer Correct Answer: A) Resources are limited. 13. Alyssa is planning to open a small clothing business. Which of the following represents the factor of production called labor? A) People hired to sew the clothes together. B) Money. C) The sewing machines used to put the clothes together. D) Chalk for the chalk sticks used to mark clothes. Show Answer Correct Answer: A) People hired to sew the clothes together. 14. Occurs when each addition of an input results in declining quantity of the output A) Diminishing Marginal Utility. B) Diminishing Marginal Costs. C) Diminishing Marginal Returns. D) Diminishing Marginal Profits. Show Answer Correct Answer: C) Diminishing Marginal Returns. 15. Which of the following would not shift an economy's PPC? A) An increase in population. B) Doubling the amount of capital in the economy. C) An increase in the money supply. D) A technological advance. Show Answer Correct Answer: C) An increase in the money supply. 16. The term for costs that cannot be avoided in the short run A) Total Cost. B) Fixed Cost. C) Average Cost. D) Variable Cost. Show Answer Correct Answer: B) Fixed Cost. 17. Which of the following is an example of "goods?" A) Mrs. Brickley starts her own business. B) Mrs. Brickley goes out to eat at Red Robin. C) Mrs. Brickley spends money on candles at Bath & Body Works. D) Mrs. Brickley gets her nails done at a nail salon. Show Answer Correct Answer: C) Mrs. Brickley spends money on candles at Bath & Body Works. 18. Factory A) Entrepreneurship. B) Capital. C) Labor. D) Production. Show Answer Correct Answer: B) Capital. 19. How many factors of production do we have? A) 3. B) 6. C) 8. D) 5. Show Answer Correct Answer: A) 3. 20. Which of the following describes an eventual decline in the productivity of factor inputs as additional units of variable factors are added to fixed resources? A) Law of diminishing marginal utility. B) Law of diminishing marginal returns. C) Laffer curve. D) Law of diminishing total product. Show Answer Correct Answer: B) Law of diminishing marginal returns. ← 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