WorksheetsEconomics Revision 4.1.4.1 - 3
Total questions: 41
Worksheet time: 21mins
Name
Class
Date
1.
... inputs (factors of production), into a final output
a)
Production converts
b)
Productivity converts
2.
Production can mean the process, or the total output produced.
a)
True
b)
False
3.
... is calculated by output per worker per period of time.
a)
Productivity
b)
Production
4.
Being more productive means the same input produces more output, over the same period of time.
a)
True
b)
False
5.
Being less productive requires a larger ... to produce the same quantity of ....
a)
input...output
b)
output...input
c)
input...input
d)
output...ouput
6.
Being more productive ... average costs per unit of output.
a)
lowers
b)
increase
7.
Output/number of employees = ....
a)
productivity
b)
production
8.
This is defined as the output per worker, per period of time.
a)
Productivity
b)
Production
9.
Specialisation cannot enable an increase in overall productivity
a)
False
b)
True
10.
Specialization makes workers more efficient and thus more productive
a)
True
b)
False
11.
Which will not increase productivity?
a)
Tariffs
b)
Incentives for increased research and development
c)
Encouraging foreign investment in the UK
d)
Setting targets
12.
Tax breaks and subsidies provide incentives for research and development
a)
True
b)
False
13.
difference in output per worker (or GDP per person employed) between one country and another.
a)
productivity gap
b)
productivity challenge
14.
Specialisation occurs when a ... concentrates on producing a particular good or service
a)
Country
b)
Firm
c)
Individual
d)
Region
15.
To specialise you must have high productivity
a)
True
b)
False
16.
Britain is highly productive with financial services, and produces a surplus of them, which
a)
it sells abroad.
b)
it consumes itself
17.
production of a good is broken up into many separate tasks each performed by a different person
a)
Division of labour
b)
Specialisation
18.
workers concentrate on different tasks within a firm; not mastering all aspects of production
a)
Division of labour
b)
Specialisation
19.
division of labour reduces productivity
a)
False
b)
True
20.
Adv. of specialisation and division of labour in the production of goods. Which is untrue?
a)
The division of labour requires less training time
b)
firms produce on a larger scale. i.e. economies of scale
c)
big production task is manageable by spreading the work out
d)
The division of labour can make jobs highly repetitive
21.
Advantages of specialisation in trade. Which is untrue?
a)
Countries produce goods with a high opportunity cost
b)
Economic growth
c)
countries can import necessary goods
d)
Increased competition
22.
Concentrating on producing a small number of goods can make an economy vulnerable
a)
True
b)
False
23.
It may hamper development if countries stick to producing primary products
a)
True
b)
False
24.
For specialisation to work, it's vital that there is an efficient means of ... goods & services
a)
exchanging
b)
bartering for
25.
The development of money (i.e. a common unit of exchange) enabled trade and specialisation
a)
True
b)
False
26.
Why might a small cafe experience negative returns from adding employees during morning rush?
a)
Not enough room for all employees to work in the same space
b)
Increased marginal output by adding a worker isn't worth it
c)
It wouldn't; more employees always means faster service
d)
They don't care about customer service
27.
The Law of Diminishing Returns is more applicable in the...
a)
short run
b)
long run
c)
both of the choices
d)
none of the choices
28.
Law of Diminishing Returns states - as 1 input variable is increased, there is a point at which
a)
the marginal per unit output decreases
b)
the marginal per unit output is zero
c)
the marginal per unit output is negative
d)
nothing is produced
29.
At what unit of fertilizer does the Law of Diminishing Returns set in?
a)
3
b)
4
c)
1
d)
6
30.
When increasing one input variable leads to a decrease in output, the firm encounters...
a)
Negative returns
b)
Output problems
c)
Long-term adjustments
d)
The law of diminishing returns
31.
If all factors of production can be changed, then it is operating in the:
a)
long run
b)
short run
c)
Trump administration
d)
none of the above
32.
The law of diminishing returns operates in the:
a)
short run
b)
short run and the long run
c)
neither the short run nor long run
d)
long run
33.
The ___ is the change in total product that results from one additional unit of an input
a)
marginal product
b)
break-even
c)
product output
d)
fixed cost
34.
The marginal product can
a)
be positive, negative or zero
b)
use the absolute value
c)
be negative
d)
be positive
35.
The average output at 2 units of labor is:
a)
4.5
b)
0
c)
4
d)
9
36.
The marginal output as labor increases from 0 to 1 is:
a)
4
b)
0
c)
9
d)
5
37.
As one variable input is increased while other factors remain fixed:
a)
eventually the marginal product decreases.
b)
the average product increases at an increasing rate.
c)
the marginal product at first decreases, then increases
d)
the total product remains constant
38.
Marginal Returns are....
a)
The additional output of the extra labour (worker)
b)
The total output change
c)
The additional out put of the workforce
d)
The difference in output between the first and last worker
39.
The Law of Diminishing marginal Returns is a...
a)
Short Run Theory
b)
Long Run Theory
40.
Increasing returns to scale are part of...
a)
The Long Run production theory
b)
The Short Run Cost theory
c)
The Long run Cost theory
d)
The short Run Production theory
41.
When the scale of all factors of production employed increases at the same rate, it is known as
a)
Constant returns to scale
b)
Increasing returns to scale
c)
Returns to scale
d)
Decreasing returns to scale
100 %
