This quiz works best with JavaScript enabled. Home > Economics > Production > Productivity > Productivity – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Productivity Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Production involves converting inputs (e.g. raw materials, labour) into outputs (things to sell). A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 2. In our "playdough economics" activities, what represented improved capital resources? A) The playdough. B) The assembly line. C) The bun and patty makers. D) The team members. Show Answer Correct Answer: C) The bun and patty makers. 3. A person opened a booth at a flea market to sell clothing. This is an example of which factor of production? A) Machinery. B) Capital. C) Natural resources. D) Entrepreneurship. Show Answer Correct Answer: D) Entrepreneurship. 4. Which of the following pairs of countries have come the closest to having a purely command economic system? A) The United States and Great Britain. B) Germany and Japan in the 1930s and early 1940s. C) China in the 1950s and North Korea today. D) South Africa and Canada. Show Answer Correct Answer: A) The United States and Great Britain. 5. What does a cost-benefit analysis compare? A) Total costs and total revenue. B) Total revenue and marginal benefit. C) Marginal costs and total costs. D) Marginal costs and marginal benefits. Show Answer Correct Answer: D) Marginal costs and marginal benefits. 6. Production can be carried out more efficiently by using A) Investment. B) Technology. C) Motivated workers. D) Better quality materials. Show Answer Correct Answer: B) Technology. 7. What effect does the lack of competition in command economies have? A) Very high quality products. B) Very low prices. C) Very high prices. D) Very low qualities products. Show Answer Correct Answer: C) Very high prices. 8. Production means manufacturing something in order to sell it A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 9. What is productivity? A) The ability to stay awake longer than anyone else. B) Making more money with less resources. C) A byproduct of excessive coffee. D) The ability to produce more output, per worker, per hour. Show Answer Correct Answer: D) The ability to produce more output, per worker, per hour. 10. The mixer, oven and decorating machine they use are examples of: A) Capital resources. B) Dividends. C) Training. D) Specialization. Show Answer Correct Answer: A) Capital resources. 11. In a bank there are tellers, loan officers, and managers. Which economic concept does this arrangement demonstrate? A) Division of labor. B) Outsourcing. C) Assembly-line production. D) Opportunity cost. Show Answer Correct Answer: A) Division of labor. 12. Becky, Betty and Bob run a cupcake shop. Becky makes the cupcakes, Betty decorates them and Bob sells them. The different jobs they have is an example of: A) Advertising. B) Specialization. C) Economic exchange. D) Capital resources. Show Answer Correct Answer: B) Specialization. 13. A product or service is scarce when A) The amount available is not enough to meet the demands of society. B) The amount available can satisfy the demands of society. C) Its price far exceeds the value of the item. D) One company is responsible for producing the product. Show Answer Correct Answer: A) The amount available is not enough to meet the demands of society. 14. Which of the following types of economies is most likely to develop new and better products? A) Market. B) Command. C) Traditional. D) None of the above. Show Answer Correct Answer: A) Market. 15. The outputs (finished goods) produced through production should have an exchangeable value-they need to be something that can be sold. A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 16. What is Switzerland's main natural resource? A) Cows. B) Gold. C) Fish. D) Timber. Show Answer Correct Answer: A) Cows. 17. An advantage of Job production is A) Its usually quicker to complete. B) Costs are much lower. C) A personal service can be provided. D) None of above. Show Answer Correct Answer: C) A personal service can be provided. 18. In a command economy, which of the following determines for whom goods and services are produced? A) The government. B) The market. C) Tradition. D) The churches. Show Answer Correct Answer: B) The market. 19. Labour productivity could be increased by all of the following except: A) Using more technologically advanced machines. B) Increasing the amount of automation. C) Improved training of workers. D) Employing more workers to produce the same level of output. Show Answer Correct Answer: D) Employing more workers to produce the same level of output. 20. Which of the following is a want? A) Shelter. B) Vacation. C) Food. D) Clothing. Show Answer Correct Answer: B) Vacation. 21. What are the central concerns of economics? A) How to get money and how to keep it. B) Resource use, production, and distribution of goods and services. C) Making decisions about who owns what and how they got it. D) The differences between goods and services. Show Answer Correct Answer: A) How to get money and how to keep it. 22. Which of the following is NOT an example of a government induced source of structural change? A) Reduced level of protection. B) Deregulation of the labour market. C) Taxation reform. D) Technological change. Show Answer Correct Answer: D) Technological change. 23. Baker buying 1000 pounds of flour for his business A) Final service. B) Consumer good. C) Intermediate goods. D) Producer goods. Show Answer Correct Answer: C) Intermediate goods. 24. In the cupcake business above, Becky, Betty and Bob each have different jobs because they want to: A) Learn different jobs. B) Make more cupcakes. C) Increase the price of the cupcakes. D) All of the above. Show Answer Correct Answer: B) Make more cupcakes. 25. In command economies, who makes the final decision whether to produce cheap cars for the working class or luxury cars for the rich and powerful? A) The World Trade Organization (WTO). B) Consumers in the market. C) Managers of auto factories. D) Government officials. Show Answer Correct Answer: B) Consumers in the market. 26. To be responsible with our money, we need to not only spend money wisely but also A) Share some. B) Save some. C) Share and save some. D) Use it as wallpaper. Show Answer Correct Answer: C) Share and save some. 27. A measure of output per unit of input A) Production. B) Economic growth. C) Productivity. D) Product. Show Answer Correct Answer: C) Productivity. 28. What is an advantage to a country of having an efficient commercial banking system? A) It encourages tax evasion. B) It controls the money supply. C) It discourages spending. D) It enables investment. Show Answer Correct Answer: D) It enables investment. 29. Olivia's parents pay for her piano lessons. Instead of going to a movie, Olivia plays the piano at her lesson on Saturday. What type of cost has occurred for Olivia? A) Fixed Cost. B) Marginal Cost. C) Variable Cost. D) Opportunity Cost. Show Answer Correct Answer: D) Opportunity Cost. 30. What does productivity mean? A) Productivity measures effectiveness. B) Productivity measures efficiency. C) Productivity is a measure of how many workers a business has. D) Productivity is how products are made. Show Answer Correct Answer: B) Productivity measures efficiency. Next →Related QuizzesProduction QuizzesEconomics QuizzesProductivity Quiz 2Productivity Quiz 3Productivity Quiz 4 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books