This quiz works best with JavaScript enabled. Home > Economics > Production > Production Economics – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Production Economics Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Minimum wage A) The lowest hourly wage permitted by law. B) The highest hourly wage permitted by law. C) The lowest salary permitted by law. D) The highest salary permitted by law. Show Answer Correct Answer: A) The lowest hourly wage permitted by law. 2. Which of the following is a role of an entrepreneur? A) Producing final accounts to measure performance. B) Specializing. C) Training. D) Organizing. Show Answer Correct Answer: D) Organizing. 3. Which statement about factors of production is correct? A) A Capital is the amount of money borrowed from a bank. B) Labour is output made by an employee. C) Land includes commercially grown rice crops. D) Profit is the reward for enterprise. Show Answer Correct Answer: D) Profit is the reward for enterprise. 4. Which of these products is most likely to be produced using labour intensive production methods? A) Wedding gowns. B) Smartphones. C) Motor bikes. D) Biscuits. Show Answer Correct Answer: A) Wedding gowns. 5. Which of the following is an economic good A) Air. B) Newspapers. C) Sunlight. D) Water. Show Answer Correct Answer: B) Newspapers. 6. Anna bought a lamp at a garage sale. She repaired it and painted it, then she sold it for a profit. The list below is what she did:*paid for the lamp $ 5*cost to paint $ 3*cost for new shade $ 7*selling price $ 30What was Anna's profit from selling the lamp? A) $ 25. B) $ 15. C) $ 20. D) $ 35. Show Answer Correct Answer: B) $ 15. 7. If there is improved technique of Production in both the goods, how the PPC will be affected? A) Leftward shift of PPC. B) Rightward shift of PPC. C) Rotation of PPC. D) None of the above. Show Answer Correct Answer: B) Rightward shift of PPC. 8. Economists refer to factors of production. Which is not a factor of production? A) The fields of a farm. B) The machinery in a factory. C) The shares of a company. D) The staff in an office. Show Answer Correct Answer: C) The shares of a company. 9. The property whereby long-run average total cost falls as the quantity of output increases. A) Economies of Scale. B) Efficient Scale. C) Constant Returns to Scale. D) Diseconomies of Scale. Show Answer Correct Answer: A) Economies of Scale. 10. What is the term for a consumer's desire and willingness to pay a price for a specific good or service? A) Demand. B) Supply. C) Wants. D) Needs. Show Answer Correct Answer: A) Demand. 11. A production function shows about the relationship between A) Input and cost. B) Outputs and cost. C) Products and cost. D) Input and Output. Show Answer Correct Answer: D) Input and Output. 12. The average amount of output produced by each labor employed is A) Total Product. B) Marginal Product. C) Average product. D) Production function. Show Answer Correct Answer: C) Average product. 13. Costs that do not change when the quanity of output produced changes? A) Fixed Costs. B) Variable Costs. C) Explicit Costs. D) Implicit Costs. Show Answer Correct Answer: A) Fixed Costs. 14. If a bakery can produce 100 cupcakes for $ 100 and 200 cupcakes for $ 150, what is the marginal cost per cupcake for the additional 100 cupcakes? A) $ 0.25. B) $ 1.00. C) $ 0.50. D) $ 0.75. Show Answer Correct Answer: C) $ 0.50. 15. Deciding to go to a football game rather than doing your homework is an example of a(n) A) Production possibility. B) Marginal cost. C) Trade-off. D) Opportunity expense. Show Answer Correct Answer: C) Trade-off. 16. After the stuffed animals are made they are brought to the stores in large trucks; this is called ..... A) Production. B) Consumption. C) Distribution. D) None of above. Show Answer Correct Answer: C) Distribution. 17. The best definition of variable costs is: A) They vary with the number of units produced. B) They vary over time. C) They vary with the prices charged by suppliers. D) They vary with tax rates set by government. Show Answer Correct Answer: A) They vary with the number of units produced. 18. Costs that do not change when the quanity of output produced changes is called A) Fixed Costs. B) Variable Costs. C) Explicit Costs. D) Implicit Costs. Show Answer Correct Answer: A) Fixed Costs. 19. An objective of production in Islam is to ..... A) Attract investor. B) Make a lot of production. C) Fulfill necessity moderately. D) Use production factors maximal. Show Answer Correct Answer: C) Fulfill necessity moderately. 20. Government leaders meet to decide what products will be produced. They then tell businesses what and how much to produce.Which economic system is being described? A) Market. B) Command. C) Mixed. D) Traditional. Show Answer Correct Answer: B) Command. ← 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 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books