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Economics multiple choice questions
GCSE and O level
Factors of Production
Multiple Choice Questions and Answers
Which statement about the factors of production is correct?
A A river from which a company draws water is called land
B Raising finance for a company is called capital
C Supervisors employed in a company are called enterprise
DThe owner of a company is called labour (J10/P1/Q1)
Answer is A
The tertiary sector of the economy is increasing in importance This statement is most likely to mean that a high proportion of the labour force is
A employed in agriculture
B employed in manufacture
C employed in the production of services
D unemployed but looking for work {J10/P1/Q3)
Answer is C
A farmer pays a landowner for the use of a field What is the income to the landowner called?
A interest B profit
C rent D wages{N10/P1/Q1]
Answer is C
What is a factor of production?
A an advantage of producing on a large scale
B a resource used to produce goods and services
C a sub-section of a manufacturing process
D a unit of output[N10/P1/Q4]
Answer is B
A university rejects 2000 qualified applicants who wish to study there What factor of production could have caused the university to make this decision?
A infinite quantity of capital
B scarcity of labour
C surplus of land unlimited
D supply of enterprise[N11/P1/Q4]
Answer is B
Which statement about the factors of production is correct?
A Capital includes factories and machinery but not roads and ports
B Enterprise is more often found in the public sector rather than the private sector
C Labour is the factor that takes risks and can become unemployed
D Land is the natural factor that can be improved by human action (J12/P1/Q2]
Answer is D
Reena makes a living by selling paintings of the town in which she lives She sells them in an open-air market once a week In order to be able to sell more pictures in a week she decides to buy a ‘studio, pay someone to help in the studio and try to increase demand by advertising in the local paper Which factors of production were changed?
A capital and enterprise
B enterprise and labour
C labour and capital
D labour only {J13/P1/Q3]
Answer is C
What is a factor of production?
A a semi-skilled, young worker
B direct taxes received by a government
C shares in a manufacturing company
D stocks of money held a bank[J14/P1/Q3]
Answer is A
Which statement about the factors of production is correct?
A Capital includes man-made machines that do not keep their original value
B Enterprise is a natural factor of production that cannot be taught
C Labour is an immobile factor that does not change its skill level
D Land is only agricultural fields that cannot be improved by human effort [N14/P1/Q2]
Answer is A
New oil reserves are discovered What has increased in supply?
A capital B enterprise
B labour D land[J15/P1/Q2]
Answer is D
Which is not a factor of production?
A a farm
B a farmer
C a farmer bank account
D a second-hand tractor{J17/P1/Q1)
Answer is C
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 (N17/P1/Q1]
Answer is C
What would be classified as the factor of production capital for an airline?
A the aircraft operated by the airline
B the money the airline keeps in the bank
C the pilots the airline uses
D the shares of the airline quoted on the stock market (J18/P1/Q2)
Answer is A
Which factor of production is not represented in the list shown?
Bananas a factory goat a risk taking visitors
A capital B enterprise
C labour D land[N18/P1/Q1]
Answer is C
A government wishes to increase : agricultural output It gives farmers the tools to irrigate the farmers’ fields.
Which factors of production are provided by the farmer?
A capital and enterprize
B enterprise and labour
C labour and land
D land and capital[J19/P1/Q1]
Answer is C
Which statement about factors of production is correct?
A Capital is the amount of money borrowed from a bank
B Labour is output made by an employee
C Land includes commercially
D Profit is the reward for enterprise (N19/P1/Q1)]
Answer is D
What can cause the supply curve for a product to shift to the right?
A an increase in demand for the product
B an increase in government subsidies to producers t
C an increase in indirect taxes on the product
D an increase in the costs of production(N19/P1/Q6}
Answer is B
In 2016, 20 billion barrels of oil and 1 6 billion barrels of natural gas were discovered in Texas, US Which factor of production has increased in the US due to this discovery?
A capital B enterprise
C labour D land[J20/P1/Q1]
Answer is D

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