Question # 1

Production of a commodity depends upon four factors of production i.e. land, labour, capital and organization

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According to classical economists

According to Neo classical economists

According to modern economists

According to Austrian school of thought

If price decreases but supply remains constant, it is called:

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Fall in supply

Contraction in supply

Expansion in supply

Rise in supply

Organization means an individual or institution which with optimum factor combination

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Lays foundation of business always earning profit

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

Lays foundation of business but accepts the responsibility of profit and loss

Serves as a manger in the business and receives remuneration

The factor of production which is used to produce more wealth or increase income is called

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Land

Labour

Capital

Organization

One of the following is not called land

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Rain

Mountain

Forests

Mangla Dam

Fourth factor of production is called

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Land

Labour

Capital

Organization

River, sea, forests, rain are called

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Land

Labour

Capital

Organization

Blessings like air, rain existing on land are included in factor of production

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Labour or human resources

Capital or monetary resources

Land or natural resources

Organisation

Which factor has no pre-determined reward

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Land

Labour

Capital

Organization

All the factors of production can be hired except

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Land

Labour

Capital

Organization

One of the following is not included in the characteristics of labour

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Labour and labourer cannot be separated

Labour can be stored

Labour has limited mobility

Supply of labour is inelastic

Perfectly inelastic supply curve is:

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Vertical

Rise upward

Horizontal

Fall downward

Third factor of production is called

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land

labour

capital

organization

Number of factors of production is

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One

Two

Three

Four

If 50% change in supply in response to 50% change in price then:

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Es = 0

Es = 1

Es > 1

Es < 1

Second factor of production is

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Land

Labour

Capital

Organization

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Principles of Economics Icom Part 1 English Medium Chapter 4 Online Test MCQs With Answers

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