Economics

Question 1

1The production function Q = f(L, K) shows

Hard

A. demand and supply B. the relationship between inputs and output C. cost and price D. profit and tax

Question 2

2The mobility of labour refers to

Easy

A. transport of goods B. the ease with which workers change jobs or locations C. the speed of workers D. population growth

Question 3

3Who organises the other factors of production and bears the risk?

Easy

A. the entrepreneur B. the landlord C. the worker D. the consumer

Question 4

4Returns to scale refer to changes in output when

Hard

A. one input changes B. technology is fixed C. all inputs are increased in the same proportion D. prices change

Question 5

5Average product is

Easy

A. total product divided by units of the variable factor B. total product times labour C. the change in total product D. fixed cost per unit

Question 6

6Capital as a factor of production refers to

Easy

A. land B. labour C. money only D. man-made goods used to produce other goods

Question 7

7Production is complete when the goods

Easy

A. reach the final consumer B. are packaged C. are advertised D. leave the factory

Question 8

8Tertiary production includes

Easy

A. commerce and direct services B. manufacturing C. mining D. farming

Question 9

9The reward for labour as a factor of production is

Easy

A. wages B. interest C. rent D. profit

Question 10

1010 workers produce 250 bags. What is the average product of labour?

Easy

A. 240 bags B. 10 bags C. 2,500 bags D. 25 bags