561. Factors of production can be:
A) Land
B) Labour
C) Organization
D) All of the above
562. Goods and services that help in the production process are called:
A) Factors of production
B) Raw materials
C) Active inputs
D) Both raw materials and factors of production
563. Production process determines:
A) Standard of living of people
B) Welfare of society
C) Prosperity of a nation
D) All of the above
564. Extraction from earth and transportation are examples of:
A) Form utility
B) Time utility
C) Place utility
D) All of the above
565. An increase in the price of a complement for product A would:
A) Shift demand for product A outwards
B) Increase internal demand for product A
C) Shift supply for product A outwards
D) Shift supply for product A inwards
566. An increase in price, all other things unchanged, leads to:
A) Shift demand outwards
B) Shift demand inwards
C) A contraction of demand
D) An extension of demand
567. If a product is an inferior good:
A) Income is inversely correlated with demand
B) Demand is inversely related to price
C) Demand is directly related to price
D) The price of alternatives is inversely correlated with demand.
568. The production possibilities curve’s bowed shape shows:
A) The law of diminishing marginal cost
B) That production is inefficient
C) That production is unattainable
D) The demand is relatively inelastic
569. If demand is price inelastic:
A) Profits must rise as a result of price increases.
B) An increase in price decreases revenue
C) An increase in cost raises money
D) A decrease in price reduces sales
570. For an inferior good:
A) A negative price elasticity of demand; the income elasticity of demand is negative
B) While there is a positive price elasticity of demand, there is a negative income elasticity of demand.
C) Demand’s price elasticity is negative; Positive income elasticity of demand
D) The income elasticity of demand is greater than the price elasticity of demand.
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