This quiz works best with JavaScript enabled. Home > Economics > Production > Production Economics – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 23 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT one of the PPF model's assumptions? A) The model focuses on production during a given time period. B) The resources available are fixed in quantity and quality. C) The model focuses only on consumer goods. D) Available technology does not change during a given time period. Show Answer Correct Answer: C) The model focuses only on consumer goods. 2. The average fixed cost is equal to the A) Total cost divided by total output. B) Total variable cost divided by total output. C) Marginal cost divided by total output. D) Total fixed cost divided by total output. Show Answer Correct Answer: D) Total fixed cost divided by total output. 3. The price of a good multiplied by the quantity of that good sold is ..... A) Change in Demand. B) Total Revenue. C) Supply Curve. D) Surplus. Show Answer Correct Answer: B) Total Revenue. 4. Which of the following would macroeconomics study? A) A general rise in prices. B) A decline in coffee prices. C) The success rate of sandwich shops. D) The work habits of students. Show Answer Correct Answer: A) A general rise in prices. 5. In the short run production function, as the quantity of variable factor is increased the output also increases but after a certain point output ..... A) Starts being constant. B) Declines. C) Also increases. D) Doesn't effect. Show Answer Correct Answer: B) Declines. 6. Labor, human capital, entrepreneurship, natural resources, and capital are all examples of which of the following? A) Outputs. B) Substitutes in Production. C) Absolute Advantage. D) Factors of Production. Show Answer Correct Answer: D) Factors of Production. 7. The amount a firm receives for the sale of its output. P x Q = ..... A) Profit. B) Total Revenue. C) Marginal Revenue. D) Average Profit. Show Answer Correct Answer: B) Total Revenue. 8. The AC curve is always pierced at its minimumpoint by a rising MC curve A) By a rising MC curve. B) By a falling MC curve. C) By a constant average variable curve. D) None of the above. Show Answer Correct Answer: A) By a rising MC curve. 9. When many workers specialize and help perform an individual task that results in a finished product. A) Productivity. B) Labor force. C) Division of labor. D) None of above. Show Answer Correct Answer: C) Division of labor. 10. When MC > AC, it is A) Pulling down AC. B) None of the above. C) Pulling up AC. D) MRS will have a U-shaped curve. Show Answer Correct Answer: C) Pulling up AC. 11. Because of scarcity, people are forced to make ..... about how to use resources. A) Choices. B) Opportunities. C) Houses. D) Desires. Show Answer Correct Answer: A) Choices. 12. What is a firm's goal? A) To maximize profit. B) Run a profitable Ponzi scheme. C) Increase labor. D) Create a new form of bacon soap. Show Answer Correct Answer: A) To maximize profit. 13. Which resource would be considered the factor of production called land? A) Timber (wood). B) A factory. C) Money. D) A farmer working their fields. Show Answer Correct Answer: A) Timber (wood). 14. The concept of taskhir implies that A) Producers are free to manipulate the natural resources made available to them by Allah. B) Producers have been given the ability to manipulate the natural resources by Allah. C) Producers should avoid damaging the earth with pollution and imbalanced ecosystem management. D) Producers should produce goods and services that preserve the five fundamentals of daruriyyat. Show Answer Correct Answer: B) Producers have been given the ability to manipulate the natural resources by Allah. 15. What is the definition of the economic term Opportunity Cost? A) The value of the next best alternative that is given up due to the choice you made. B) The price you pay to purchase something. C) The benefit you gain by making a decision. D) The amount of debt you take on by making a decision. Show Answer Correct Answer: A) The value of the next best alternative that is given up due to the choice you made. 16. Revenue generated by producing one additional unit of product. A) Marginal Revenue. B) Marginal Profit. C) Total Revenue. D) Average Revenue. Show Answer Correct Answer: A) Marginal Revenue. 17. Your Mail lady is an example of ..... A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: B) Labor. 18. The satisfaction received from using one more unit of a good or service is called A) Opportunity cost. B) Opportunity benefit. C) Marginal cost. D) Marginal benefit. Show Answer Correct Answer: D) Marginal benefit. 19. What is an example of the purchase of a consumer good? A) A farm owner buys a television. B) A farm owner buys additional land. C) A farm owner buys fertiliser for their crops. D) A farm owner buys some farming equipment. Show Answer Correct Answer: A) A farm owner buys a television. 20. What is the amount of a product or service that is available for consumers to buy? A) Demand. B) Supply. C) Scarcity. D) Profit. Show Answer Correct Answer: B) Supply. ← 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