Tag: economics

Quizzes (361) Questions (3598)

Questions Related to economics

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.

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

Rent theory of profit is associated with the name of ________.

  1. Hawley

  2. Walker

  3. Schumpeter

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

The rent theory was developed by an American economist,Francis L Walker.
He states that profit is the rent of ability.
Entrepreneurs of superior ability earns profit just as superior land earns rent.

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

To simplify the regulatory framework the government introduced the 'ease of doing business' scheme wherein an MSME unit has to fill in a single one page self-declaration online form called ___________.

  1. adhaar form

  2. MSME application form

  3. udyog aadhaar

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

Udyog Aadhar is a one-page registration form which constitutes a self-declaration format under which the Micro, Small, and Medium Enterprises(MSME)  will self-certify its existence, bank account details,  promoter/owner’s aadhaar details and other minimum information required.

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

Key characteristics of entrepreneurship are:

  1. It promotes the managers to be more innovative and take more responsibility while demonstrating charismatic leadership qualities.

  2. Entrepreneurship projects are funded by large business organizations and agreed percentage of profits are remitted to the fund provider/head quarters of the business.

  3. Entrepreneurship will cultivate entrepreneurial skills/culture within the corporate culture where managers will be motivated to accept more risk.

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

The key characteristics of entrepreneurship are

  • It brings innovation, responsibility, and leadership qualities in the manager which leads to better vision of the organisation.
  • Entrepreneurship projects are funded by various investors which includes both public and private investors.
  • Entrepreneurship projects are made with special entrepreneurship skills which demands risk taking and decision making. 

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

 ________ is the person who combines the various factors of production in the right proportions, initiates the process of production and bears the risk involved in it.

  1. Capitalist

  2. Socialist

  3. Government

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

An entrepreneur is defined as an individual who organizes, manages, and assumes the risks of a business or enterprise.