R4RIN – MCQs, Mock Tests | Economics Economics Production and Production Function

Labour is hirable but you cannot hire:

1. Capital
2. Land
3. Manager
4. Entrepreneur

✅ Correct Answer: 4

The three broad types of productive resources are:

1. Money profit and interest
2. Capital labour and natural resources
3. Bond stock shares and deposits
4. Technology human capital and markets

✅ Correct Answer: 2

Land means:

1. Sea
2. Surface of earth
3. Natural forests
4. All natural resources

✅ Correct Answer: 4

Economic development of a country requires:

1. Skilled labour
2. Diplomacy
3. Abundant natural resources
4. (a) and (c) of above

✅ Correct Answer: 4

Productivity of land can be raised by:

1. Extensive cultivation
2. Intensive cultivation
3. Better marketing
4. (a) and (b) of above

✅ Correct Answer: 2

Land :

1. Is a free gift of nature
2. Lacks geographical mobility
3. Is not hirable
4. (a) and (b) of above

✅ Correct Answer: 4

Which of the following is NOT and input:

1. Labour
2. Entrepreneurship
3. Natural resources
4. Production

✅ Correct Answer: 4

Which of the following input factor takes risk innovtes and coordinates:

1. Capital
2. Labour
3. Productivity
4. Entrepreneur

✅ Correct Answer: 4

Which of the following is correct with respect to resources:

1. Money is a capital good
2. Human skills are a labour input
3. Entrepreneur is part of the labour input
4. Natural resources include human input

✅ Correct Answer: 2

The transformation of resources into economic goods and series is called:

1. Technical efficiency
2. Input
3. Production
4. Increasing returns

✅ Correct Answer: 3

Economic goods produced by firms are called:

1. Productivity
2. Innovation
3. Technological progress
4. Output

✅ Correct Answer: 4

Land is:

1. Hirable
2. Not hirable
3. Homogeneous
4. A form of capital

✅ Correct Answer: 1

Geographical mobility is not possible for:

1. Land
2. Labour
3. Capital
4. Wealth

✅ Correct Answer: 1

The following is NOT a factor of production:

1. Labour
2. Entrepreneurship
3. Land
4. Money

✅ Correct Answer: 4

Which of the following factors takes risk innovates and coordinates:

1. Capital
2. Labour
3. Bank
4. Entrepreneur

✅ Correct Answer: 4

The transformation of resources into economic goods and services is:

1. Inpur
2. Production
3. Increasing returns
4. Output

✅ Correct Answer: 4

For production of goods we need factors:

1. Few
2. Two
3. Four
4. Unlimited

✅ Correct Answer: 3

Standard of living of a country can be raised if it increases:

1. Labour force
2. Production
3. Money supply
4. Exports

✅ Correct Answer: 2

Productivity of land can be raised by:

1. Extensive cultivation
2. Intensive cultivation
3. Better marketing
4. Increasing money supply

✅ Correct Answer: 2

Natural environment that can be used for the production of goods and services is:

1. Labour
2. Money
3. Capital
4. Natural resources

✅ Correct Answer: 4

An example of natural resources is:

1. Factory
2. Skilled doctor
3. Oil reserves in the ground
4. Oil reserves in storage tank

✅ Correct Answer: 3

In Monopoly at various output levels:

1. AR = MR
2. AR < MR
3. AR > MR
4. None of these

✅ Correct Answer: 1

Excise tax is a part of:

1. Fixed cost
2. Variable cost
3. Implicit cost
4. Is not a part of cost

✅ Correct Answer: 2

The shape of rectangular hyperbola is made by:

1. MC
2. AFC
3. AVC
4. None of these

✅ Correct Answer: 2

As output increases:

1. MC curve firstly falls then rises
2. MC firstly rises then falls
3. MC continuously rises
4. None of these

✅ Correct Answer: 1

Unit cost is another name for:

1. MC
2. AVC
3. ATC
4. AFC

✅ Correct Answer: 3

All inputs can be varied:

1. Short run
2. Long run
3. Both periods
4. Non of the period

✅ Correct Answer: 2

Which statement is true:

1. ATC + AVC = AFC
2. ATC + MC = AFC
3. ATC + AFC = AVC
4. AFC + AVC = ATC

✅ Correct Answer: 4

Which is NOT a cause of shift in cost curves of a firm:

1. Excise tax
2. Prices of inputs
3. Increase in productivity
4. Price of product

✅ Correct Answer: 4

MC is given by:

1. Slope of TFC
2. Slope of TC
3. Slope of AC
4. None of these

✅ Correct Answer: 2

TC

1. Starts from origin
2. Does not start from origin
3. Is parallel to Y-axis
4. None of these

✅ Correct Answer: 2

TVC

1. Starts from origin
2. Does not start from origin
3. Is parallel to Y-axis
4. None of these

✅ Correct Answer: 1

TC

1. Rises continuously
2. Falls after reaching a maximum
3. Is horizontal
4. None of these

✅ Correct Answer: 1

All the following are U-shaped Except:

1. AVC
2. AFC
3. AC
4. MC

✅ Correct Answer: 2

The cost which a firm incurs for purchasing or hiring factors is called:

1. Implicit
2. Explicit
3. Real
4. Nominal

✅ Correct Answer: 2

The short run:

1. Is less than one year
2. Requires that at least one input is fixed
3. Requires that all inputs are fixed
4. Is just long enough to permit entry and exit

✅ Correct Answer: 2

The long run is a:

1. Period of three years or longer
2. Period long enough to allow firms to change plant size and capacity
3. Period long enough to allow firm to make economic decisions
4. A period which affects larger than smaller firms

✅ Correct Answer: 2

As output increases AC curve:

1. Falls
2. Rises
3. Remains constant
4. (a) (b) (c) are all correct

✅ Correct Answer: 4