Tag: production mechanism

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Questions Related to production mechanism

Multiple choice economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

As a Factor of Production, the Supply of Land is relatively elastic from the viewpoint of ___________________.

  1. The entire economy

  2. An Individual Firm

  3. Both (a) and (b)

  4. Neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For an individual firm, the supply of land is relatively elastic because the firm can attract more land by offering higher prices or rents, effectively pulling it away from other uses.

Multiple choice economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

As a Factor of Production, Land is permanent. This means that Land ___________________.

  1. Remains before and after cultivation

  2. Cannot be destroyed or lost

  3. Cannot be used for production at all

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The permanence of land refers to its physical existence; while its fertility or surface can be altered, the land itself cannot be destroyed or cease to exist.

Multiple choice economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

As a Factor of Production, Land is mobile across ____________.

  1. Places

  2. Uses

  3. Both (a) and (b)

  4. Neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

While land cannot be moved geographically, it is mobile across uses. This means a piece of land can be switched from one purpose, such as farming, to another, such as building a factory.

Multiple choice economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

No two pieces of land are exactly alike in all respects. This statement is ______________.

  1. True

  2. False

  3. Partially True

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Land is heterogeneous, meaning every piece of land differs in location, fertility, topography, and other natural characteristics.

Multiple choice economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

If Land is used for productive purposes, its fertility is reduced. Such fertility ________________.

  1. Can be restored

  2. Cannot be restored at all

  3. Is lost forever

  4. Both (b) and (c)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The fertility of land can be depleted through intensive use, but it is not lost forever; it can be restored through methods like fertilization, crop rotation, and fallowing.

Multiple choice economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

As a Factor of Production, the Elasticity of Supply of Land from the viewpoint of the entire economy is ______________.

  1. Infinite

  2. Zero

  3. Positive

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

Since the total amount of land in the entire economy is fixed and cannot be increased regardless of price, the supply is perfectly inelastic, which corresponds to an elasticity of zero.

Multiple choice economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

Which category of land is rent-less land?

  1. First category of land

  2. Second category of land

  3. Third category of land

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

Rent, for a land in the case of cultivation land, refers to the difference between the value of the produce and the cost of cultivation. Marginal land is the last grade of land cultivated whose price of produce is just equal to the cost incurred. Thus, it is a rent-less land, since the cost of cultivation is equal to the value of the produce.

Multiple choice economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

Which of these is an example of Land as a Factor of Production?

  1. Agricultural Lands

  2. Forests

  3. Diamond Mines

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

In economics, land includes all natural resources provided by nature, including agricultural soil, forests, and mineral deposits found in mines.

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

High yielding variety seeds (HYV) were introduced to Indian farmers to bring about the ________.

  1. White Revolution

  2. Green Revolution

  3. Orange Revolution

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

The introduction of high-yielding varieties of seeds led to the increase in production of foodgrains, thus improving agriculture in India.