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

Economic rent refers to which of the following?

  1. Payment made for the use of labour

  2. Payment made for the use of capital

  3. Payment made for the use of organisation

  4. Payment made for the use of land
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The reward for land is rent. Thus if the land is not owned by the entrepreneur the owner of the land must be compensated for its usage and thus the entrepreneur pays rent. 

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

If more and more capital and labour are employed on a piece of land after a certain point, the output increases by _________.

  1. more than proportionately

  2. proportionately

  3. less than proportionately

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

This happens due to negative marginal returns for eg , in case of excessive employment in a particular land. At this point withdrawal of workers will help to increase the total output.

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

_____is/are characteristic of land.

  1. Fixed supply

  2. Requires labours and capital to be useful

  3. Highly immobile

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

Land is a free gift of nature to the human beings hence the supply of land is fixed,it requires labours and capital to be useful in order to make some production to the economy, it does not possess an mobilty,ie, 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

The supply curve of land is __________.

  1. U shaped

  2. L shaped

  3. a straight line

  4. downward sloping
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In classical economics, the total supply of land is considered fixed, meaning it does not change regardless of price. This results in a perfectly inelastic supply curve, which is represented as a vertical straight line.

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 not land in economics?

  1. Thermal power project at Singrauli

  2. Mango orchard of Malaybad in Uttar Pradesh

  3. Fish reserves of Arabian Sea

  4. Teak forest of Assam
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In economics, land refers to natural resources. A thermal power project is a man-made capital asset, not a natural resource, whereas orchards, fish reserves, and forests are natural resources.

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

Which of the following will have a flat supply curve?

  1. Labour

  2. Capital

  3. Land

  4. Raw material
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Land has a flat supply curve because the quantity supplied of the land is fixed as land is natural resource. Land has a perfectly inelastic supply, that is, the supply of the land remains fixed irrespective of the increase or decrease in the demand of the land.

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

Supply of land is ________.

  1. perfectly inelastic

  2. perfectly elastic

  3. highly elastic

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

Supply of land is perfectly inelastic as change in demand of land does not lead to any change in supply of land as land is a free gift of nature and it's quantity is fixed.Supply curve of land is a straight vertical line .

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

Land in economics, means __________.

  1. material and non-material goods on the surface of earth

  2. minerals under the surface of earth

  3. all natural resources available to man for producing wealth

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

In economics, land is defined broadly as all natural resources provided by nature that are used in the production of wealth. This includes surface land, minerals, and other natural gifts.

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

State the factor that is fixed in the short run.

  1. Land

  2. Raw material

  3. Electricity

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

In the short run, land is considered a fixed factor because its total supply cannot be increased easily. Labor, raw materials, and electricity are variable factors that can be adjusted quickly.