12 Questions
Which of the following is considered as production in Economics?
Tilling of soil
What is the definition of Production in Economics?
Creation of utility in matter
Which process is considered the creation of utilities in the form of goods and services in Economics?
Production
What statement about production in Economics is true?
The services of a doctor are considered production
Which activity is NOT considered production in Economics?
Holding a child who is falling from a wall
What is the primary goal of Production in Economics?
Adding value through creation of goods and services
What is the objective of production?
To transform resources into finished products
Which component is essential for production?
Intention
What does production exclude?
All of the above
What do factors of production refer to?
Inputs
Which factors make it possible to produce goods and services?
Land, Labour, Capital and Entrepreneurial ability
Which factor of production is considered a free gift of nature?
Land
Study Notes
Production in Economics
- Production is the creation or addition of utility to goods and services.
- Activities that create utility are considered production in economics, such as performing an art in a theatre.
Characteristics of Production
- Production involves transforming resources into finished products in the form of goods and services.
- The objective of production is to satisfy the demand of transformed resources.
Factors of Production
- Factors of production refer to the inputs or resources that make it possible to produce goods and services.
- The four factors of production are:
- Land: a free gift of nature, natural resources, and limited in supply.
- Labour: human effort.
- Capital: man-made resources.
- Entrepreneurial Ability: the ability to organize and manage resources.
Characteristics of Land
- Land is a free gift of nature.
- Land is immobile.
- Land is limited in supply.
- Land's productive power is indestructible.
- Land is heterogeneous, meaning no two pieces of land are alike.
- Land's usefulness depends on human efforts.
- Land is a passive factor.
Test your knowledge on production in economics with this quiz. Determine what is considered production in economics and understand the concept of creating or adding utility. Choose the correct answer from a multiple-choice question format.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
