Tag: land,labour, capital and entrepreneur

Questions Related to land,labour, capital and entrepreneur

Which is the most essential function of an entrepreneur?

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

  1. Supervision

  2. Management

  3. Marketing

  4. Risk bearing

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Correct Option: D
Explanation:

An entrepreneur uses his ideas and knowledge to run an organization thus,he bears the risk involved in setting up an organization.

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 

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

  1. I and II are correct

  2. II and III are correct

  3. II and IV are correct

  4. All are correct

Show answer
Correct Option: D
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.

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

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

  1. interest

  2. rent

  3. dividend/profit

  4. wages

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Correct Option: C
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.

Which factor of production brings together the other factors of production to produce economic goods and services?

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

  1. Land

  2. Entrepreneur

  3. Capital

  4. Labour

Show answer
Correct Option: B
Explanation:

Entrepreneur uses his/her skills ,knowledge and ideas to bring the other factors of production to produce economic goods and services

An entrepreneur takes the responsibility of _________.

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

  1. production

  2. supply of a production

  3. management

  4. organisation

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Correct Option: D
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.