Categories
Economics

Points on the Production Possibilities Frontier are:

A. Inefficient
B. Unattainable
C. Efficient
D. None of the above

CORRECT ANSWER IS: Efficient

Categories
Economics

Economic growth is Illustrated as:

A. Production Possibilities Frontier shifts outwards
B. Production Possibilities Frontier shifts inwards
C. Movement from inside the curve towards the curve
D. Movement along the production possibilities Frontier towards capital goods

CORRECT ANSWER IS: Production Possibilities Frontier shifts outwards

Categories
Economics

The term capitalism refers the:

A. State and Private ownership of capital goods
B. Use of markets
C. State ownership of capital goods
D. Private ownership of capital goods

CORRECT ANSWER IS: Private ownership of capital goods

Categories
Economics

The fundamental economic problem is:

A. Unemployment
B. Scarcity
C. Poverty
D. Inflation

CORRECT ANSWER IS: Scarcity

Categories
Economics

Economies of scale represents the:

A. Rising average cost
B. Constant average cost
C. Falling average cost
D. Positive average cost

CORRECT ANSWER IS: Falling average cost

Categories
Economics

Which group shows the basic factors of production?

A. Land, Labour, Natural Resources, Capital
B. Land, Labour, Capital, Technology
C. Land, Management Skills, Capital, Technology
D. Land, Labour, Capital, Enterprise

CORRECT ANSWER IS: Land, Labour, Capital, Enterprise

Categories
Economics

Long run is a period in which:

A. All factors of production can change
B. Capital can not be changed
C. Only one factor of production is fixed
D. Labour can not be changed

CORRECT ANSWER IS: All factors of production can change

Categories
Economics

Short run is the time period in which:

A. All factors of production are fixed
B. Variable factors of production can change
C. All factors of production can change
D. None of the above

CORRECT ANSWER IS: Variable factors of production can change

Categories
Economics

Which of the following is considered as a factor of production?

A. Unskilled Labour
B. Traders
C. Land
D. Labour

CORRECT ANSWER IS: Land and Labour

Categories
Economics

What is economics?

A. Management of scarce resources to maximize utility.
B. Management of resources only.
C. Maximization of utility.
D. None of the above

CORRECT ANSWER IS: Management of scarce resources to maximize utility.