1st Year Principles of Economics Chapter 4 TestFactors Of Production

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. Reward for labour is called:

   1. Wages

   2. Rent

   3. Interest

   4. Profit

2. Blessings like air, sun, rain existing on land are included in factor of production:

   1. Labour or human resources

   2. Capital or monetary resources

   3. Land or natural resources

   4. Organization

3. In modern term, factors of production are called:

   1. Inputs

   2. Productive services

   3. Inputs and productive services

   4. Production of goods and services

4. Which is not include in natural resources:

   1. Minerals

   2. Climate

   3. Money

   4. Forests

5. Free gift of nature is:

   1. Land

   2. Labour

   3. Capital

   4. Organization

6. ...... is not a factor od production:

   1. Land

   2. Labour

   3. Production

   4. Capital

7. Organization means an individual or institution which with optimum factor combination:

   1. Lays foundation of business always earning profit

   2. Lays foundation of business but does not accept the responsibility of profit and loss

   3. Lays foundation of business and accepts the responsibility of profit and loss

   4. Serves as a manager in the business and receives remuneration

8. If an entrepreneur does service, in economics it is called:

   1. Organization

   2. Discipline

   3. Labour

   4. Wage

9. One of the following is not included in the characteristics of land:

   1. Land is a gift of nature

   2. All the pieces of land are not equal in fertility

   3. Productive capacity of land is limited

   4. Supply of land is unlimited

10. Number of factors of production is:

    1. One 

    2. Two

    3. Three

    4. Four