This quiz works best with JavaScript enabled. Home > Economics > Production > Production Economics – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A system in which people produce, sell and buy goods and services A) Economy. B) Ecosystem. C) Education. D) None of above. Show Answer Correct Answer: A) Economy. 2. What is the function of the factors of production in an economy? A) To make goods and services to fulfil wants and needs. B) To provide an even distribution of income. C) To provide tax income for the government. D) To reduce the existence of external costs. Show Answer Correct Answer: A) To make goods and services to fulfil wants and needs. 3. People who help stock the shelves at the store are called ..... A) Human resources. B) Capital resources. C) Factors of production. D) Natural resources. Show Answer Correct Answer: A) Human resources. 4. What best describes the problem of scarcity? A) All consumer wants must be satisfied. B) All resources are free at the point of use. C) There are limited resources and unlimited wants. D) There are unlimited resources and limited wants. Show Answer Correct Answer: C) There are limited resources and unlimited wants. 5. Which of these terms is the BEST synonym for the word "entrepreneur"? A) Business owner. B) Homeowner. C) Employee. D) Student. Show Answer Correct Answer: A) Business owner. 6. Higher productivity is important as it: A) Increases average costs. B) Lower profits. C) Reduces average cost. D) Reduces the firm's ability to complete internationally. Show Answer Correct Answer: C) Reduces average cost. 7. If a firm does not produce any output, its costs are equal to A) Zero. B) Its fixed costs. C) Its variable costs. D) Its implicit costs. Show Answer Correct Answer: B) Its fixed costs. 8. What do economies aim to achieve in tackling the economic problem of scarcity? A) Equal balance between public and private sectors. B) Equal reward for equal effort. C) Increased competition in the use of resources. D) Optimum allocation of finite resources. Show Answer Correct Answer: D) Optimum allocation of finite resources. 9. ..... is the study of the production, distribution, and consumption of goods and services. A) School. B) Capitalism. C) Economics. D) Government. Show Answer Correct Answer: C) Economics. 10. Whay are the average total, average variblae, and marginal cost curves U shaped? A) They show the products increasing and decreasing quanitty in a market based on the laws of demand. B) They show increasing marginal returns f or small quantities of output followed by decreasing marginal returns for larger quantities of output. C) They demonstrate the relationship between creating and buying with in a monopolistic market. D) All of the above answer choices. Show Answer Correct Answer: B) They show increasing marginal returns f or small quantities of output followed by decreasing marginal returns for larger quantities of output. 11. Unlimited wants and limited resources lead to a condition called A) Economics. B) Scarcity. C) Opportunity costs. D) Risk. Show Answer Correct Answer: B) Scarcity. 12. Which of the following are NOT the objectives of a Muslim producer? A) Improve the conditions of society through the use of resources. B) Maximize level of profits. C) Obtain the blessings of Allah SWT. D) Achieve reasonable amount of profits. Show Answer Correct Answer: B) Maximize level of profits. 13. Cashiers at McDonalds are examples of ..... A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: B) Labor. 14. Any technology/machinery involved in the production process: A) Human Capital. B) Physical Capital. C) Investment Capital. D) Enterprise Capital. Show Answer Correct Answer: B) Physical Capital. 15. What is a variable cost to a firm producing bicycles? A) The component parts of the bicycles. B) The interest in money borrowed. C) The rent of the bicycle factory. D) The salaries of the senior managers. Show Answer Correct Answer: A) The component parts of the bicycles. 16. Underutlization shows an economy that is A) Inefficient. B) Maximizing production. C) Experiencing growth. D) Trading with other economies. Show Answer Correct Answer: A) Inefficient. 17. Which of the following examines the costs and expected benefits of a choice? A) Choice-benefit analysis. B) Cost-profit analysis. C) Cost-benefit analysis. D) Choice-profit analysis. Show Answer Correct Answer: C) Cost-benefit analysis. 18. All natural resources that go into the production of a good or service: A) Capital. B) Entrepreneurship. C) Land. D) Labor. Show Answer Correct Answer: C) Land. 19. Why a man will get zero reward while he is consuming legitimate things? A) He has no conscious intentions regarding his consumption. B) He is ready to refrain from consuming anything that God prohibits. C) He is sharing some of his consumption with others example by paying zakah. D) He is changing the composition of his consumption through substituting halal for haram things. Show Answer Correct Answer: A) He has no conscious intentions regarding his consumption. 20. The garbage truck is an example of which Factor of Production? A) Labor. B) Land. C) Entrepreneurship. D) Capital. Show Answer Correct Answer: D) Capital. ← PreviousNext →Related QuizzesEconomics QuizzesProduction Economics Quiz 1Production Economics Quiz 2Production Economics Quiz 3Production Economics Quiz 5Production Economics Quiz 6Production Economics Quiz 7Production Economics Quiz 8Production Economics Quiz 9Production Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books