Free Producer Behaviour 01 Practice Test - 11th Grade - Commerce
Question 1
Economic development of a country requires:
Skilled labour
Diplomacy
Abundant natural resources
(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:
Extensive cultivation
Intensive cultivation
Better marketing
(a) and (b) of above
SOLUTION
Solution : B
Productivity of land can be raised by intensive cultivation.
Question 3
Land
Is a free gift of nature
Lacks geographical mobility
Is not hirable
(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
Labour
Entrepreneurship
Natural resources
Production
SOLUTION
Solution : D
Production is a process, not an input.
Question 5
Which of the following input factor takes risk, innovates, and coordinates:
Capital
Labour
Productivity
SOLUTION
Solution : D
Entrepreneur takes risk, innovates, and coordinates.
Question 6
Which of the following is correct with respect to resources:
Money is a capital good
Human skills are a labour input
Entrepreneur is part of the labour input
Natural resources include human input
SOLUTION
Solution : B
Human skills are a labour input.
Question 7
Economic goods produced by firms are called:
Productivity
Innovation
Technological progress
Output
SOLUTION
Solution : D
Economic goods produced by firms are called output.
Question 8
Land is:
Factor of production
Not hirable
Homogeneous
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.
True.
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:
Labour force
Production
Money supply
Exports
SOLUTION
Solution : B
Standard of living of a country can be raised if it increases production.