21 Firms and Production

Which of the following is not likely the key factor that influence the factors of production?

• Cost

• Quantity

• Productivity

• Poverty

Which of the following factors of production is a man-made?

• land

• capital

• entrepreneur

• labour

Which of the following could cause an increase in demand for capital goods?

• A decrease in corporation tax

• A fall in disposable income

• A rise in interest rates

• A rise in pessimism

Twenty-five workers produce a total output of 300. What is the average product per worker?

• 12

• 25

• 300

• 7500

Which of the following factors of production is considered as the most important?

• land

• capital

• enterprise

• labour

What will make an industry capital-intensive?

• employing many unskilled workers

• manufacturing expensive products

• occupying cheap land

• using expensive equipment and a small labour force

Which of the following statement defined 'production'?

• the total output of goods and services in the production process

• the measure of efficiency found by calculating the amount of output per unit of factor input.

• the use of capital is more prominent than any other factor of production

• the use of labour is more prominent than any other factor of production

Which of the following statement defined 'productivity'?

• the total output of goods and services in the production process

• the measure of efficiency found by calculating the amount of output per unit of factor input.

• the use of capital is more prominent than any other factor of production

• the use of labour is more prominent than any other factor of production

Which of the following is not likely the importance of high productivity?

• economic growth

• higher wages

• diseconomies of scale

• improved competitiveness

Which of the following statement is the reason for using labour-intensive production?

• to use mass production techniques

• machinery is more accurate than human

• enable to provide customized and personalize services

• capable to set automation in production