GBS 2nd term Economics exams

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

• interest

• donation

• gift

• subsidy

The reward of land as a factor of production is

• profit

• rent

• interest

• wages

The reward of capital as a factor of production is

• interest

• rent

• wage

• profit

The type of production that involves the tapping and extracting of natural resources is ............ production

• primary

• secondary

• tertiary

• industry

Labour can be efficient when there are

• adequate tools to work

• high level of employment

• limited vacancies

• government restriction

Division of labour is limited by

• size of the market

• capital

• cost of production

• individual wants are satisfied

One of the disadvantages of division of labour is that

• it saves time

• it helps improve their skills

• risk of unemployment

• use of machine is possible

A business is in existence primarily to .........

• make profit

• provide goods and services

• unlimited liability

• ease of commencement

one of the demerit of sole trading is

• quick decision making

• flexibility in operation

• unlimited liability

• ease in commencement

which of the following is not a source of finance to a sole proprietorship

• trade credit

• overdraft

• debentures

• leasing