UMI107 General Economics FunQuiz (Week 4)

What is the primary role of firms in an economy?

• To regulate the economy

• To produce goods and services

• To provide government services

• To manage consumer spending

What is the goal of firms when transforming inputs into outputs?

• Reducing costs

• Maximizing profit

• Increasing employment

• Minimizing production

Which of the following is considered a factor of production that includes natural resources, raw materials, and physical space?

• Labor

• Capital

• Land

• Entrepreneurship

Which factor of production involves tools, machinery, buildings, and equipment that enhance productivity?

• Labor

• Capital

• Land

• Entrepreneurship

Which of the following is considered a "free gift of nature" and is fixed in supply?

• Labour

• Capital

• Land

• Organization

What are the factors of production that carry out the production process called?

• At the end of first stage, AP reaches its maximum.

• In the second stage, AP is still increasing.

• At the end of second stage, TP reaches its maximum.

• At the end of second stage, MP becomes zero.

What is the difference between variable inputs and fixed inputs?

• Variable inputs change with the level of production, while fixed inputs remain constant.

• Fixed inputs change with the level of production, while variable inputs remain constant.

• Both variable and fixed inputs change with the level of production.

• Neither variable nor fixed inputs change with the level of production.

Which of the following is NOT an example of an input factor?

• Technology

• Raw Material

• Labour

• Product

What are variable inputs in the context of production?

• Inputs that do not change in the short run

• Inputs that can be changed depending on the volume of output

• Inputs that are always fixed in the long run

• Inputs that are only used in agriculture

Which of the following is an example of a variable input in production?

• Land.

• Building.

• Raw materials.

• Machineries.