THEORY OF PRODUCTION

The three broad categories of production are _____

• Direct, secondary and extractive

• Secondary, primary and indirect

• Primary, secondary and tertiary

• Primary, tertiary and direct

The type of production that involves the tapping and harnessing of natural resources is ______________

• Primary production

• Secondary production

• Tertiary production

• Industrial production

The resources used in production are called __________

• Variable inputs

• Factors of production

• Fixed inputs

• Capital for production

The factor of production which takes the initiatives in combining resources for production is known as _________

 

• Capital

• Land

• Entrepreneur

• Labour

  Farming, mining and fishing are ____________

• Secondary production

• Primary production

• Tertiary production

• Intermediate production

    In economics, production is complete when _______

• Goods are sold to the wholesaler

• Goods are produce in the factories

• Goods and services reach the final consumer

• Goods are sold to the retailer

The term production in economics means _______

• The creation of utilities

• Giving birth to children

• The distribution of goods and service

• The manufacturing of goods

   Subsistence production means that goods and services are __________

• Produced for the market

• Sold in the country

• Sold to others

• Produced for consumption only

   Which of the following is a reward to a factor of production?

• Interest

• Donation

• Gift

• Subsidy

    One of the advantages of large-scale production is that ___________

• There is a rise in the cost of administration

• Consumers sacrifice their individual tastes

• The firm can use labor-saving machinery

• The demand for a firm’s products becomes localized