CSEC Economics Section 2

Production can be defined as

• the method of advertising goods
• the act of selling products
• the process of converting inputs into finished goods and services

• the process of distributing services

The formula for calculating productivity is

• Productivity = Output / Input
• Productivity = Output - Input
• Productivity = Output + Input
• Productivity = Input / Output

If 5 workers produced 200 tables in a day. Labour productivity is

• 50 tables per worker
• 25 tables per worker
• 40 tables per worker
• 30 tables per worker

Which of the following is NOT a factor of production?

• Labor
• Money
• Land
• Entrepreneurship

Which FOP refers to all the man made resources used in creating output ?

• Entrepreneurship
• Land
• Labor
• Capital

Which FOP refers to the mental and physical effort of humans in production?

• Capital
• Land
• Entrepreneurship
• Labour

Which of the following is NOT an example of the factor of production land?

• Agricultural land

• Water

• Oil

• Machinery

Which factor of production combines all other factors of production to create output?

• Land
• Capital
• Labour

• Entrepreneurship

The rewards for labour and land are

• Salaries for labor and lease for land.
• Bonuses for labor and mortgage for land.
• Commissions for labor and ownership for land.
• Wages for labour and rent for land.

Which economic sector is responsible for the extraction of raw materials ?

• Service sector
• Primary sector
• Quaternary sector
• Tertiary sector