Tag: economics

Questions Related to economics

Entrepreneurs initiate and sustain the process of economic development in which of the following ways?

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. Capital formation

  2. Improvement in per capita income

  3. Generation of employment

  4. All of the above

Show answer
Correct Option: D
Explanation:

All the above mentioned functions are performed by an entrepreneur which lead to economic development. He makes investment in the firm, which leads to rise in capital formation in the economy. This in turn generates employment opportunities and increased production goods and services, further, income is earned by people employed and profit is generated. This improves the per capita income in the income, which will further increase capital formation, and hence, sustain the process of economic development.

What is the most important and specific function of an entrepreneur?

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. Risk-bearing function

  2. Administrative function

  3. Decision-making function

  4. Distributive function

Show answer
Correct Option: A
Explanation:

An entrepreneur has to bear all types of risks connected with the business. The risk may be associated with production, investment, profit or loss of the company, technological and frequent changes in government policies. It is very important function of an entrepreneur.

An entrepreneur must have the qualities of __________.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. leadership

  2. risk-taking attitude

  3. innovation

  4. all of the above

Show answer
Correct Option: D
Explanation:
The entrepreneur brings the other 3 factors of production together in  order to  make a product or provide a service. 

A paid manager cannot be described as an ____________.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. entrepreneur

  2. industrialist

  3. businessman

  4. none of the above

Show answer
Correct Option: A
Explanation:

A manager is responsible for managing daily tasks and problems in a firm. An entrepreneur build the firm from scratch and requires different set of qualities. 

Rent theory of profit is associated with the name of ________.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. Hawley

  2. Walker

  3. Schumpeter

  4. J.B. Clark

Show answer
Correct Option: B
Explanation:

The rent theory was developed by an American economist,Francis L Walker.
He states that profit is the rent of ability.
Entrepreneurs of superior ability earns profit just as superior land earns rent.

Risk theory of profit was advocated by ________.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. Hawley

  2. J.B. Clark

  3. Marshall

  4. Schumpeter

Show answer
Correct Option: A
Explanation:

Risk theory was coined by FB Hawley who states that risk taking as the main function of an entrepreneur

An entrepreneur undertakes the ______ responsibility.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. production

  2. supply of a production

  3. management

  4. organisations

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Correct Option: D
Explanation:

An entrepreneur undertakes the organization responsibility as he uses his skills and ideas to run the organization.

To simplify the regulatory framework the government introduced the 'ease of doing business' scheme wherein an MSME unit has to fill in a single one page self-declaration online form called ___________.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. adhaar form

  2. MSME application form

  3. udyog aadhaar

  4. adhaar udyog

Show answer
Correct Option: C
Explanation:

Udyog Aadhar is a one-page registration form which constitutes a self-declaration format under which the Micro, Small, and Medium Enterprises(MSME)  will self-certify its existence, bank account details,  promoter/owner’s aadhaar details and other minimum information required.

Key characteristics of entrepreneurship are:

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. It promotes the managers to be more innovative and take more responsibility while demonstrating charismatic leadership qualities.

  2. Entrepreneurship projects are funded by large business organizations and agreed percentage of profits are remitted to the fund provider/head quarters of the business.

  3. Entrepreneurship will cultivate entrepreneurial skills/culture within the corporate culture where managers will be motivated to accept more risk.

  4. All of the above

Show answer
Correct Option: D
Explanation:

The key characteristics of entrepreneurship are

  • It brings innovation, responsibility, and leadership qualities in the manager which leads to better vision of the organisation.
  • Entrepreneurship projects are funded by various investors which includes both public and private investors.
  • Entrepreneurship projects are made with special entrepreneurship skills which demands risk taking and decision making. 

 ________ is the person who combines the various factors of production in the right proportions, initiates the process of production and bears the risk involved in it.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. Capitalist

  2. Socialist

  3. Government

  4. Entrepreneur

Show answer
Correct Option: D