Satisfaction of Human Wants & Production Review

The desire to have a commodity or service is called:

• Want

• Utility

• Goods

• None of these

The goods which satisfy human wants directly are called:

• Consumer goods

• Producer goods

• Public goods

• Intermediate good

By making a table, a carpenter creates:

• Service utility

• Place utility

• Form utility

• None of these

Motor car for a busy doctor is a:

• Comfort

• Luxury

• None of these

• Necessity

Wrist watch for a college student is a:

• Necessity

• Luxury

• Comfort

• None of these

All of the economic inputs that are required to produce goods and services are called:

• Demand

• Factors of production

• Supply

• Capital for production

The physical effort of people to produce goods or services describes which factor of production?

• Land

• Capital

• Labour

• Entrepreneurship

The ideas and emotional drive a person has to produce something that other people will want to buy describes which factor of production?

• Labour

• Capital

• Entrepreneurship

• Land

Production of a good is broken up into many separate tasks each performed by a different person:

• Specialization

• Division of labour

Advantages of specialisation and division of labour in the production of goods. Which is untrue?

• Division of labour can make jobs highly repetitive

• Division of labour requires less training time

• Firms produce on large scale

• Big production task is manageable by spreading the task out