Economics Quiz

What is economics?

• The study of historical events

• The science that deals with the production and consumption of goods and services

• The study of the Earth's atmosphere

• The study of plants and animals

What are the two words that economists use most often?

• Supply and demand

• Buy and sell

• Profit and loss

• Income and expenses

What are the factors influencing demand?

• Cost of the inputs, Prices of related goods

• Availability of labor, Availability of water, Availability of fuel

• Weather, Technology, Prices of related goods

• Income of the people, Prices of related goods, Tastes of consumers

What are the factors influencing supply?

• Cost of the inputs, Technology, Weather, Prices of related goods

• Availability of labor, Availability of water, Availability of fuel

• Transport facilities, Nearness to the market, Availability of water

• Income of the people, Prices of related goods, Tastes of consumers

What are direct costs in production?

• Costs related to marketing

• Costs related to transportation

• Costs traceable to the creation of a product including materials and labor

• Costs that cannot be traced to the product such as overhead

What is economic analysis used for?

• To predict the weather

• To analyze historical events

• To manage decision problems by using simple economic analysis

• To study the behavior of animals

What is plant location in business?

• The process of designing products

• The process of hiring employees

• The process of selling products to customers

• The choice of region and the selection of a particular site for setting up a business or factory

What is the primary factor affecting plant location decisions?

• Availability of finance

• Suitability of climate

• Competition between states

• Availability of raw materials

What is the ideal location for a plant?

• The place of maximum net advantage or which gives lowest unit cost of production and distribution

• The place with the highest transportation costs

• The place with the highest labor costs

• The place with the highest raw material costs

What is the importance of availability of labor in plant location decisions?

• Labor should be expensive to ensure quality

• Labor is not important in plant location decisions

• Labor should be scarce to increase competition

• The combination of adequate labor with suitable skills and reasonable wages can highly benefit the firm