Free Producer Behaviour 01 Practice Test - 11th Grade - Commerce 

Question 1

Economic development of a country requires:

A.

Skilled labour

B.

Diplomacy

C.

Abundant natural resources

D.

(a) and (c) of above

SOLUTION

Solution : D

Economic development of a country requires skilled labour and abundant natural resources.

Question 2

Productivity of land can be raised by:

A.

Extensive cultivation

B.

Intensive cultivation

C.

Better marketing

D.

(a) and (b) of above

SOLUTION

Solution : B

Productivity of land can be raised by intensive cultivation.

Question 3

Land

A.

Is a free gift of nature

B.

Lacks geographical mobility

C.

Is not hirable

D.

(a) and (b) of above

SOLUTION

Solution : D

Land is a free gift of nature and alcks geographical mobility.

Question 4

Which of the following is NOT an input

A.

Labour

B.

Entrepreneurship

C.

Natural resources

D.

Production

SOLUTION

Solution : D

Production is a process, not an input. 

Question 5

Which of the following input factor takes risk, innovates, and coordinates:

A.

Capital

B.

Labour

C.

Productivity

D. Entrepreneur

SOLUTION

Solution : D

Entrepreneur takes risk, innovates, and coordinates.

Question 6

Which of the following is correct with respect to resources:

A.

Money is a capital good

B.

Human skills are a labour input

C.

Entrepreneur is part of the labour input

D.

Natural resources include human input

SOLUTION

Solution : B

Human skills are a labour input.

Question 7

Economic goods produced by firms are called:

A.

Productivity

B.

Innovation

C.

Technological progress

D.

Output

SOLUTION

Solution : D

Economic goods produced by firms are called output.

Question 8

Land is:

A.

Factor of production

B.

Not hirable

C.

Homogeneous

D.

A form of capital

SOLUTION

Solution : A

Land is one among the four factors of production- land, labour, capital and orgranisation. 

Question 9

Constant returns to scale (CRS) is a property of production function that holds when a proportional increase in all inputs results in an increase in output by the same proportion.

A.

True.

B.

False

SOLUTION

Solution : A

True. Constant returns to scale (CRS) is a property of production function that holds when a proportional increase in all inputs results in an increase in output by the same proportion.

Question 10

Standard of living of a country can be raised if it increases:

A.

Labour force

B.

Production

C.

Money supply

D.

Exports

SOLUTION

Solution : B

Standard of living of a country can be raised if it increases production.

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