Tag: land,labour, capital and entrepreneur

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Questions Related to land,labour, capital and entrepreneur

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

An entrepreneur must be ______ to foresee the changes in the market so that the production could be adjusted accordingly.

  1. careless

  2. farsighted

  3. negligent

  4. ignorant
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An entrepreneur must be Farsighted to foresee the changes in the market so that the production could be adjusted accordingly. If a entrepreneur will have the awareness of future possibilities, he will do some adjustment according to it. 

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

The main functions of an entrepreneur are grouped categories including ______________.

  1. risk-bearing functions

  2. administrative and decision-making functions

  3. distributive functions

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The entrepreneur brings the other 3 factors of production together in  order to  make a product or provide a service. 

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

An entrepreneur always attempts to bring change in terms of factor proportions which is called innovation. A manager is concerned only with day-to-day affairs of a going concern.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An entrepreneur is a person with an idea who takes the risk to pursue the idea and turn it into reality.On the other hand,manager manages the operations and functions of the organizations.

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

___________ is one of the most important functions of an entrepreneur.

  1. Entertainment

  2. Innovation

  3. Administration

  4. Production
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Innovation is important for entrepreneur because an entrepreneur leads the rest of the firm and constant innovation is required for being competitive in the market and hence create more income for themselves and the country. 

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

An entrepreneur must have the qualities of __________.

  1. influencing the people

  2. win their confidence

  3. must understand human nature

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An entrepreneur must have the capability to interact with the people. The entrepreneur should make the people happy and win their confidence. He should be able to understand the nature of the people. He should react according to the person's behaviour.

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

Entrepreneurs initiate and sustain the process of economic development in which of the following ways?

  1. Capital formation

  2. Improvement in per capita income

  3. Generation of employment

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All the above mentioned functions are performed by an entrepreneur which lead to economic development. He makes investment in the firm, which leads to rise in capital formation in the economy. This in turn generates employment opportunities and increased production goods and services, further, income is earned by people employed and profit is generated. This improves the per capita income in the income, which will further increase capital formation, and hence, sustain the process of economic development.

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

What is the most important and specific function of an entrepreneur?

  1. Risk-bearing function

  2. Administrative function

  3. Decision-making function

  4. Distributive function
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An entrepreneur has to bear all types of risks connected with the business. The risk may be associated with production, investment, profit or loss of the company, technological and frequent changes in government policies. It is very important function of an entrepreneur.