This quiz works best with JavaScript enabled. Home > Economics > Production > Production Economics – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Alyssa is planning to open a small clothing business. Which of the following represents capital needed to start such a business? 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: C) The sewing machines used to put the clothes together. 2. Economics is the study of ..... A) Money. B) Chicken. C) The Government. D) Choices. Show Answer Correct Answer: D) Choices. 3. Which of the following are assumptions underlying the PPC? A) Only two goods are produced. B) Technology, population, and capital are variable. C) Prices determine the position on the PPC. D) All the above. Show Answer Correct Answer: A) Only two goods are produced. 4. Iron, minerals, coal and plants are examples of which factor of production? A) Natural Resources/Land. B) Labor. C) Entrepreneurship. D) Capital. Show Answer Correct Answer: A) Natural Resources/Land. 5. Fixed costs ..... A) Rise less than proportional to. B) Labour costs overtime. C) Fuel costs delivery van. D) Do not change in relation to the volume of production. Show Answer Correct Answer: D) Do not change in relation to the volume of production. 6. What type of factor of production is a road? A) Capital. B) Land. C) Labor. D) Enterprise. Show Answer Correct Answer: A) Capital. 7. The perpetual problem in economics is: A) The inability of people to work together effectively. B) The inability to satisfy everyone's wants with the resources available. C) The gap between the income of the rich and the poor. D) How to supply enough to earn a consistent profit. Show Answer Correct Answer: B) The inability to satisfy everyone's wants with the resources available. 8. What is likely to happen when the rate of interest increases? A) Consumer spending increases. B) Firms buy fewer machines. C) People hold more cash. D) Savers earn lower rewards. Show Answer Correct Answer: B) Firms buy fewer machines. 9. The addition of new resources often enables a nation to A) Produce more goods and services. B) Produce less goods and services. C) Produce more goods but fewer services. D) Produce fewer goods but more services. Show Answer Correct Answer: A) Produce more goods and services. 10. Labor is defined as ..... . A) The workers on the factory floor. B) The employees in an office. C) The human activity involved in production. D) The population available for work. Show Answer Correct Answer: C) The human activity involved in production. 11. When "wants are greater than the resources available to satisfy them, " it is called ..... A) Scarcity. B) Needs. C) Opportunity Cost. D) None of these answers. Show Answer Correct Answer: A) Scarcity. 12. Which of the following is a free good? A) Wind coming from the sea. B) Inoculation provided without charge by the state. C) Recycled paper. D) Products given away by a supermarket to attract customers. Show Answer Correct Answer: A) Wind coming from the sea. 13. Natural resources come from A) Nature and are limited. B) Nature and are unlimited. C) A factory and we can make more. D) None of above. Show Answer Correct Answer: A) Nature and are limited. 14. What is an entrepreneur? A) A student in college. B) A leader of a country. C) A worker in a factory. D) A person who starts a new business. Show Answer Correct Answer: D) A person who starts a new business. 15. A person who purchases a good or service A) Consumer. B) Taxes. C) Supply. D) Good. Show Answer Correct Answer: A) Consumer. 16. The best definition of productivity is: A) How efficient a firm is. B) Total output/total input. C) The total amount produced by a business. D) Total inputs/ total outputs. Show Answer Correct Answer: B) Total output/total input. 17. When the demand for cultural services and leisure increases, it will adversely affect the demand for ..... A) Luxuries only. B) Material comfort and luxuries of life. C) Material comfort only. D) Social needs only. Show Answer Correct Answer: A) Luxuries only. 18. What are the gifts of nature that make production possible? A) Consumer goods. B) Human capital. C) Natural resources. D) Input. Show Answer Correct Answer: C) Natural resources. 19. Which of these is not a decision which is made to solve the basic economic problem? A) What to produce. B) Why to produce. C) How to produce. D) For whom to produce. Show Answer Correct Answer: B) Why to produce. 20. WHAT ARE THE 4 FACTORS OF PRODUCTION? A) Land, Capital, Need & Want. B) Land, Labor, Capital, Entrepreneurs. C) Water, Air, Food & Shelter. D) Land, Capital, Good & Service. Show Answer Correct Answer: B) Land, Labor, Capital, Entrepreneurs. ← 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