Economics/Manufacturing Quiz

Which of the following is NOT a factor of production?

• Land

• Labor

• Capital

• Taxes

An increase in demand with no change in supply will result in:

• Lower prices

• Higher prices

• No change in prices

• A decrease in quantity supplied

Which concept is illustrated by a point inside the PPC?

• Efficiency

• Unemployment or underutilization of resources

• Economic growth

• Impossible production levels

Which of the following scenarios represents scarcity?

• A bakery has unlimited flour

• A country has limited resources but unlimited wants

• A manufacturer producing goods at full capacity

• A store offering discounts on surplus items

A point outside the PPC represents a production level that is currently unattainable.

• True

• False

Labor is an example of a factor of production.

• True

• False

When demand decreases, the equilibrium price of a good generally increases.

• True

• False

What is the definition of Opportunity Cost?

• Maximum potential output combinations

• Relationship between price and quantity

• Value of the next best alternative

• Amount of goods producers are willing to sell

Which term describes the resources used to produce goods and services?

• Factors of Production

• Law of Demand

• Supply

• Opportunity Cost

What is the main focus of the Law of Demand?

• Price and quantity relationship

• Production resources

• Alternative values

• Goods supply