CSEC POB - Section 5 - Production

Which of the following is a primary need?

• money

• transport

• land

• food

Which of the following is not a factor of production?

• food

• land

• labour

• capital

In a subsistence economy the main source of production is:

• exports

• manufacturing

• agriculture

• mining

Which of the following is a diseconomy of scale?

• extensive advertising is practicable

• labour-saving machinery can be used

• more capital is available

• lines of communication can become complex

Fixed capital includes:

• buildings

• stocks

• bank balance

• stationery

The Law of Diminishing Returns states that with additions to labour:

• marginal output rises

• average output rises

• marginal output falls

• total output increases

The labour force of a country is:

• all people below retirement age

• all persons who are employed or are available for work

• the total population

• all persons over the school leaving age

Automation in industry can result in:

• increased need for tertiary services

• employment of a larger workforce

• a more skilled workforce

• increased production costs

WHAT ARE THE 4 FACTORS OF PRODUCTION?

• Land, Capital, Needs & Wants

• Land, Labour, Capital, Entrepreneurship

• Water, Air, Food & Shelter

• Land, Capital, Good & Service

WHAT IS LABOUR?

• work people do for pay to produce good and services

• actions people do for other people

• any physical object

• The money people get for inheritance