Tag: how does production take place?

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Questions Related to how does production take place?

Multiple choice economics how does production take place? land land,labour, capital and entrepreneur production mechanism

Which of the following includes entrepreneurs cost of production?
I. Wages of labour
II. Interest of capital
III. Cost of raw materials
IV. Depreciation of capital goods 

  1. I and II are correct

  2. II and III are correct

  3. II and IV are correct

  4. All are correct
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Entrepreneurs' cost of production includes-
1) wages of labour
2) interest of capital(amount of money invested)
3) depreciation of capital goods like machinery
-as all these are to be bear by the entrepreneur or the business entity.
Multiple choice economics how does production take place? land land,labour, capital and entrepreneur production mechanism

The cost of entrepreneur as a factor of production is _______.

  1. interest

  2. rent

  3. dividend/profit

  4. wages
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Dividend/profit is known as the cost as a factor of production.For instance, when an entrepreneur invests his ideas to run an organization,then as a result ,profit is derived which is known as the cost of entrepreneur.

Multiple choice economics how does production take place? land land,labour, capital and entrepreneur production mechanism

An entrepreneur takes the responsibility of _________.

  1. production

  2. supply of a production

  3. management

  4. organisation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An entrepreneur uses his skill and knowledge to run an organization and thus, he takes the responsibility of the whole organization in order to ensure the smooth functioning of the organization.