Tag: economics

Questions Related to economics

Surplus earned by a factor land in a short period of time referred to as ________.

economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

  1. economic rent

  2. net rent

  3. quasi-rent

  4. super-normal rent

Show answer
Correct Option: C
Explanation:

Quasi-rent refers to the excess amount earned from the utilization of land for the production mechanism during short period of time.

Which of the following resources is most scarce?

economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

  1. land resource

  2. air as a resource

  3. human resource

  4. all the the above

Show answer
Correct Option: A
Explanation:

Land is a free gift of nature and it is fixed in terms of the area hence it is the most scarce resource among the following.

Seawater, fresh air, etc are regarded in Economics as _________.

economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

  1. giffen goods

  2. inferior goods

  3. free goods

  4. normal goods

Show answer
Correct Option: C
Explanation:
Sea water,fresh air,etc are regarded as free goods in economics as these are natural resources and hence these are the free gifts of nature.These resources also possess unlimited availability.

Rent paid by a residential tenant to the owner is a part of ________.

economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

  1. capital formation

  2. final consumption

  3. intermediate consumption

  4. consumer durable

Show answer
Correct Option: B
Explanation:

It is a final consumption as over here the residential tenant is the final consumer. Moreover, paying rent to the owner does not involve any  intermediate consumption.

The cost of land as a factor of production is _________.

economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

  1. rent

  2. interest

  3. dividend

  4. fertilizers

Show answer
Correct Option: A
Explanation:

The cost of land as factor of production is known as rent.For instance, when a person utilize a piece of land for any production purpose,certain cost in the form of rent is to be paid.

_____is not a characteristic of land.

economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

  1. Free gift of nature

  2. Fixed supply

  3. Complete mobility

  4. Heterogeneity in productivity

Show answer
Correct Option: C
Explanation:

Complete mobility is not a characteristics of land as land is a free gift of nature ,it does not possess any mobility ,that is, it cannot be moved from one place to another.

_____these resources would be called as land in economics.

economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

  1. Coal mines of Bihar

  2. Water resources of Uttaranchal

  3. Mineral deposits of Jharkhand

  4. All of the above

Show answer
Correct Option: D
Explanation:

Coal mines of Bihar, water resources of Uttaranchal,mineral deposits of Jharkhand- all these resources are regarded as land in economics because these resource help to produce goods and services in the economy thus, an efficient production process can be ensured. Income and employment generation -can also be increased by utilizing these resources.

______ has a flat supply curve.

economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

  1. Capital

  2. Land

  3. Labour

  4. Technology

Show answer
Correct Option: B
Explanation:

Land has a flat supply curve since the quantity supplied of land is fixed since land is a natural resource. Therefore, the supply curve of land is inelastic in nature, that is, supply of land remains fixed irrespective of the change in demand level.

Which of these is/are not characteristic of land as a factor of production.?

economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

  1. Mobility

  2. Limited supply

  3. Heterogeneity

  4. Passive

Show answer
Correct Option: A
Explanation:

Land is a natural resource and does not possess any mobility ,that is ,it cannot be moved from one place to another.

Which of the following factor of production is free gift of nature?

economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

  1. Entrepreneurship

  2. Capital

  3. Labour

  4. Land

Show answer
Correct Option: D
Explanation:

Among the 4 factors of production, land is a free gift of nature to human beings, its quantity supplied is unlimited and fixed.