This quiz works best with JavaScript enabled. Home > Economics > Production > Productivity > Productivity – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Productivity Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following represents marginal cost? A) Mortgage payments. B) The sum of fixed costs and variable costs. C) Wages and raw materials. D) The cost of producing one additional unit. Show Answer Correct Answer: D) The cost of producing one additional unit. 2. One of the benefits of increasing productivity is: A) Average costs will stay the same. B) More workers will be employed. C) Fewer raw materials will be needed to produce the same level of output. D) Total production will increase with the same number of workers. Show Answer Correct Answer: D) Total production will increase with the same number of workers. 3. Which of the following countries' economies has the fewest elements of a command economy and the most elements of a market economy? A) Sweden. B) France. C) The United States. D) Germany. Show Answer Correct Answer: A) Sweden. 4. Which of the following is the best definition of 'an increase in efficiency'? A) Higher output levels than last year. B) Lower total costs of production. C) Fewer workers employed but output level remains the same. D) 10% more workers employed and output also rises by 10%. Show Answer Correct Answer: B) Lower total costs of production. 5. What term do we use to describe items that are necessary for survival? A) Shortage. B) Need. C) Want. D) Scarcity. Show Answer Correct Answer: B) Need. 6. Which of the following is NOT a factor of production? A) Capital. B) Land. C) Labor. D) Money. Show Answer Correct Answer: D) Money. 7. An aim of microeconomic reform is to A) Lower firms' production costs. B) Increase aggregate demand. C) Increase wages growth. D) Eliminate excess capacity. Show Answer Correct Answer: A) Lower firms' production costs. 8. What did Henry Ford do in order to make the monotony of the assembly line more acceptable to the workers? A) He increased pay to $ 5 per day. B) He provided free coffee for the workers. C) He made his factories play music for the workers. D) Workers received free uniforms. Show Answer Correct Answer: A) He increased pay to $ 5 per day. 9. Are the tax rates higher in the United States or in Western Europe? A) The United States. B) Western Europe. C) Taxes are very high in both the United States and in Western Europe. D) Taxes are very low in both the United States and in Western Europe. Show Answer Correct Answer: A) The United States. 10. The most accepted argument in favor of market economies is their efficiency. The argument most accepted in favor of command economies is the belief that they are A) More fair. B) More religious. C) More traditional. D) More efficient. Show Answer Correct Answer: D) More efficient. 11. All of the following are essential questions societies must answer about production EXCEPT A) When to Produce. B) What to Produce. C) For Whom to Produce. D) How to Produce. Show Answer Correct Answer: A) When to Produce. 12. Goods used as inputs in the production process A) Consumer good. B) Final good. C) Intermediate goods. D) Producer goods. Show Answer Correct Answer: C) Intermediate goods. 13. Unlimited desires and limited resources is the problem of A) Scarcity. B) Free enterprise. C) Wants. D) Marginal benefit. Show Answer Correct Answer: A) Scarcity. 14. Which factor of production is best for changing from labour intensive to capital intensive? A) Target Market. B) Technology. C) Resources. D) Standards. Show Answer Correct Answer: B) Technology. 15. Which of the following is LEAST likely to increase productivity? A) Increased manufactured protection. B) Innovative production methods. C) Investment in human capital. D) Investment in physical capital. Show Answer Correct Answer: A) Increased manufactured protection. 16. An example of job production is A) Raw materials. B) Car manufacturing. C) Teaching. D) Kitchen design. Show Answer Correct Answer: D) Kitchen design. 17. If a business quality is not maintained then the business will: A) Gain customers. B) Increase sales. C) Build brand loyalty. D) Lose Customers. Show Answer Correct Answer: D) Lose Customers. 18. Goods used by customer A) Final service. B) Consumer good. C) Intermediate goods. D) Producer goods. Show Answer Correct Answer: B) Consumer good. 19. What are the factors of production? A) Taxes, gov't, laws. B) Land, labor, capital. C) Money, trade, markets. D) Private property, productivity, time. Show Answer Correct Answer: B) Land, labor, capital. 20. What are three ways businesses can improve productivity? A) New workers, technology, money. B) Trained workers, technology, money. C) Trained and educated workers, equipment, technology. D) None of above. Show Answer Correct Answer: C) Trained and educated workers, equipment, technology. 21. A disadvantage of Job production is A) Similar products are produced. B) There are usually higher costs involved. C) There are too many skilled people available. D) None of above. Show Answer Correct Answer: B) There are usually higher costs involved. 22. What is GDP per capita? A) The number of geriatric prisoners per year per capital. B) The net amount of imports divided by the number of capitals. C) The GDP of the country divided by its population. D) The net amount of exports divided by population. Show Answer Correct Answer: C) The GDP of the country divided by its population. 23. This measure relates to how we produce? A) Productivity. B) Value-adding. C) Production. D) Economic growth. Show Answer Correct Answer: A) Productivity. 24. Production (Making parts Assembling chairs) 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. 25. Productivity is the output per factor employed 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. 26. An example of batch production is A) Car manufacturing. B) Tailor. C) Garden design. D) Bakery. Show Answer Correct Answer: D) Bakery. 27. In our "playdough economics" activities what represented specialization? A) The tools. B) The final product. C) Workers doing one part of the job. D) The playdough. Show Answer Correct Answer: C) Workers doing one part of the job. 28. When markets and governments decide how wealth, money, and goods and services are distributed, what basic economic question are they answering? A) What to produce?. B) How to produce?. C) How much money should be printed?. D) For whom to produce?. Show Answer Correct Answer: B) How to produce?. 29. What is the economic term for the practice of assigning small parts of a complicated job to individual workers who specialize in doing just their small part? A) Tasking. B) Mandating. C) Division of labor. D) Task multiplication. Show Answer Correct Answer: A) Tasking. 30. Which of these is a service? A) Jogging shoes. B) Birthday cake. C) Readymade dress. D) Plumbing. Show Answer Correct Answer: D) Plumbing. ← PreviousNext →Related QuizzesProduction QuizzesEconomics QuizzesProductivity Quiz 1Productivity Quiz 3Productivity Quiz 4 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books