This quiz works best with JavaScript enabled. Home > Economics > Production > Production Economics – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 18 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is considered "unskilled labor?" A) A cashier. B) A doctor. C) A teacher. D) An electrician. Show Answer Correct Answer: A) A cashier. 2. What are expenses? A) The money a company makes. B) Costs of operating a business. C) The act of buy items. D) There is no such thing. Show Answer Correct Answer: B) Costs of operating a business. 3. Which is not considered a need? A) Food. B) Clothing. C) Shelter. D) Television. Show Answer Correct Answer: D) Television. 4. What is the best explanation of factors of production? A) Money and financing. B) Raw materials used to produce products. C) Labor and materials. D) Resources used by a company to produce good and services. Show Answer Correct Answer: D) Resources used by a company to produce good and services. 5. Which of the following calculations would you use to find total costs? A) Fixed Costs + Variable Costs. B) Selling Price - Fixed Costs. C) Total Fixed Costs / Selling Price - Variable Cost. D) Total Fixed Costs/Variable Cost Per Item. Show Answer Correct Answer: A) Fixed Costs + Variable Costs. 6. An Iso-quant shows the same level of ..... throughout the curve. A) Satisfaction. B) Production. C) Expenditure. D) Profit. Show Answer Correct Answer: B) Production. 7. Which of the following is counted as capital goods when assessing Depreciation? A) An oven. B) All of the above. C) A Petroleum Engineer. D) A Power Plant Operator. Show Answer Correct Answer: B) All of the above. 8. When we use up or significantly reduce our resources A) Recycling. B) Surplus. C) Depletion. D) Dilution. Show Answer Correct Answer: C) Depletion. 9. A government wishes to increase agricultural output. It gives farmers the tools to irrigate the farmers' fields. Which factors of production are provided by the farmers? A) Capital and enterprise. B) Labor and land. C) Enterprise and labor. D) Land and capital. Show Answer Correct Answer: B) Labor and land. 10. Kaylee decides to subscribe to Hulu instead of Netflix. Netflix is her: A) Production Possibility. B) Opportunity Cost. C) Barter. D) Choice. Show Answer Correct Answer: B) Opportunity Cost. 11. Economic growth affects the PPF by ..... A) Shifting inward. B) Shifting outward. C) Causing no change at all. D) Turning it into a straight line. Show Answer Correct Answer: B) Shifting outward. 12. Groceries are a: A) Fixed expense. B) Variable expense. C) Intermittent expense. D) Discretionary expense. Show Answer Correct Answer: B) Variable expense. 13. An economic system based on businesses relying on competition and individuals making decisions is which of the following? A) Market. B) Command. C) Mixed. D) Traditional. Show Answer Correct Answer: A) Market. 14. When is a firm most likely to reduce its demand for labour? A) When the demand for the final good increases. B) When the firm's profitability increases. C) When the price of labour decreases. D) When the productivity of labour decreases. Show Answer Correct Answer: D) When the productivity of labour decreases. 15. The term "factors of production" means: A) Things or skills needed to produce goods or services. B) How we spend our money. C) The resources of the government. D) How society creates jobs. Show Answer Correct Answer: A) Things or skills needed to produce goods or services. 16. Economics textbooks identify the existence of scarcity as the basic economic problem. What is it that makes scarcity a problem? A) It can cause inflation and unemployment. B) It is impossible to satisfy unlimited wants. C) It is the first priority of governments. D) It only affects the richest countries. Show Answer Correct Answer: B) It is impossible to satisfy unlimited wants. 17. Which if these is an advantage of labour intensive production? A) Lower unit costs. B) More flexibility. C) More consistent in production. D) People are easier to manage than machines. Show Answer Correct Answer: B) More flexibility. 18. A laptop is an example of ..... A) Natural Resources. B) Human Resources. C) Capital Resources. D) Entrepreneurship. Show Answer Correct Answer: C) Capital Resources. 19. Which factor of production involves risk-taking? A) Capital. B) Labor. C) Enterprise. D) Land. Show Answer Correct Answer: C) Enterprise. 20. What does a point inside the curve of a PPC indicate? A) All resources are fully employed. B) Not all resources are fully employed. C) More resources are required. D) Less resources are required. Show Answer Correct Answer: B) Not all resources are fully employed. ← 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