Tag: economics

Questions Related to economics

Economic rent refers to which of the following?

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

  1. Payment made for the use of labour

  2. Payment made for the use of capital

  3. Payment made for the use of organisation

  4. Payment made for the use of land

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Correct Option: D
Explanation:

The reward for land is rent. Thus if the land is not owned by the entrepreneur the owner of the land must be compensated for its usage and thus the entrepreneur pays rent. 

If more and more capital and labour are employed on a piece of land after a certain point, the output increases by _________.

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

  1. more than proportionately

  2. proportionately

  3. less than proportionately

  4. constantly

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Correct Option: C
Explanation:

This happens due to negative marginal returns for eg , in case of excessive employment in a particular land. At this point withdrawal of workers will help to increase the total output.

_____is/are characteristic of land.

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

  1. Fixed supply

  2. Requires labours and capital to be useful

  3. Highly immobile

  4. All of the above

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Correct Option: D
Explanation:

Land is a free gift of nature to the human beings hence the supply of land is fixed,it requires labours and capital to be useful in order to make some production to the economy, it does not possess an mobilty,ie, it cannot be moved from one place to another.

The supply curve of land is __________.

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

  1. U shaped

  2. L shaped

  3. a straight line

  4. downward sloping

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Correct Option: C

Which of these is not land in economics?

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

  1. Thermal power project at Singrauli

  2. Mango orchard of Malaybad in Uttar Pradesh

  3. Fish reserves of Arabian Sea

  4. Teak forest of Assam

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Correct Option: A

Which of the following will have 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. Labour

  2. Capital

  3. Land

  4. Raw material

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Correct Option: C
Explanation:

Land has a flat supply curve because the quantity supplied of the land is fixed as land is natural resource. Land has a perfectly inelastic supply, that is, the supply of the land remains fixed irrespective of the increase or decrease in the demand of the land.

Supply of land is ________.

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

  1. perfectly inelastic

  2. perfectly elastic

  3. highly elastic

  4. relatively elastic

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Correct Option: A
Explanation:

Supply of land is perfectly inelastic as change in demand of land does not lead to any change in supply of land as land is a free gift of nature and it's quantity is fixed.Supply curve of land is a straight vertical line .

The supply of land is _______.

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

  1. unlimited

  2. increased

  3. decreased

  4. limited

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Correct Option: D
Explanation:

The supply of land is fixed as land is a free gift of nature,it can neither be increased,decreased nor it is unlimited.

Land in economics, means __________.

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

  1. material and non-material goods on the surface of earth

  2. minerals under the surface of earth

  3. all natural resources available to man for producing wealth

  4. all of the above

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Correct Option: D

State the factor that is fixed in the short run.

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

  2. Raw material

  3. Electricity 

  4. Labour

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Correct Option: A