Tag: economics

Quizzes (361) Questions (3598)

Questions Related to economics

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

Surplus earned by a factor land in a short period of time referred to as ________.

  1. economic rent

  2. net rent

  3. quasi-rent

  4. super-normal rent
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Quasi-rent refers to the excess amount earned from the utilization of land for the production mechanism during short period of time.

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

Seawater, fresh air, etc are regarded in Economics as _________.

  1. giffen goods

  2. inferior goods

  3. free goods

  4. normal goods
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Sea water,fresh air,etc are regarded as free goods in economics as these are natural resources and hence these are the free gifts of nature.These resources also possess unlimited availability.

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

Rent paid by a residential tenant to the owner is a part of ________.

  1. capital formation

  2. final consumption

  3. intermediate consumption

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

It is a final consumption as over here the residential tenant is the final consumer. Moreover, paying rent to the owner does not involve any  intermediate consumption.

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

The cost of land as a factor of production is _________.

  1. rent

  2. interest

  3. dividend

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

The cost of land as factor of production is known as rent.For instance, when a person utilize a piece of land for any production purpose,certain cost in the form of rent is to be paid.

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

_____is not a characteristic of land.

  1. Free gift of nature

  2. Fixed supply

  3. Complete mobility

  4. Heterogeneity in productivity
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Complete mobility is not a characteristics of land as land is a free gift of nature ,it does not possess any mobility ,that is, it cannot be moved from one place to another.

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

_____these resources would be called as land in economics.

  1. Coal mines of Bihar

  2. Water resources of Uttaranchal

  3. Mineral deposits of Jharkhand

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

Coal mines of Bihar, water resources of Uttaranchal,mineral deposits of Jharkhand- all these resources are regarded as land in economics because these resource help to produce goods and services in the economy thus, an efficient production process can be ensured. Income and employment generation -can also be increased by utilizing these resources.

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

______ has a flat supply curve.

  1. Capital

  2. Land

  3. Labour

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

Land has a flat supply curve since the quantity supplied of land is fixed since land is a natural resource. Therefore, the supply curve of land is inelastic in nature, that is, supply of land remains fixed irrespective of the change in demand level.