Factors of Production — Practice

Q1. In economics the factors of production are classified into how many types?

• A. Two — land and labour
• B. Three — land, labour and capital
• C. Four — land, labour, capital and entrepreneurship
• D. Five — land, labour, capital, entrepreneurship and technology

Q2. In the chapter's opening example Ratna runs a small restaurant on the city outskirts. What is the name of her restaurant?

• A. Highway Diner
• B. Pause Point
• C. Ratna's Kitchen
• D. City Outskirt Cafe

Q3. A 'business' in the margin is defined as

• A. Only a large factory that manufactures goods
• B. Only a shop that sells goods to customers
• C. A firm, a shop, a factory, etc., which produces or sells goods or provides a service
• D. An organisation that only provides services, not goods

Q4. In economics, the word 'land' includes not only geographical land but also

• A. Machinery, tools and factories
• B. Soil, forests, water, air, sunlight, minerals, oil and natural gas
• C. Money, bank loans and shares
• D. Education, training and skills

Q5. Businesses obtain the land they require by

• A. Only purchasing it outright
• B. Only renting it for a period of time
• C. Either purchasing it or paying rent to use it for a period of time
• D. Receiving it free from the government

Q6. 'skill' (in the margin) is defined as

• A. Only physical strength used in heavy work
• B. The ability to do an activity or job well with practice and training
• C. The total years of formal schooling completed
• D. The salary received for doing a job

Q7. On, the chapter distinguishes 'labour' from 'human capital'. Which statement matches the chapter?

• A. Labour and human capital mean exactly the same thing.
• B. Labour is physical and mental effort; human capital is the specialised skills, knowledge, abilities and expertise required to perform that labour.
• C. Labour refers to skills; human capital refers to physical effort.
• D. Human capital is the money paid as wages to workers.

Q8. The Japanese concept of 'kaizen'. The meaning of kaizen, as given in the chapter, is

• A. Lifelong loyalty to one employer
• B. Continuous improvement
• C. Group decision-making at the workplace
• D. Respect for one's seniors

Q9. As per World Bank estimates of 2023, the Adult Literacy Rate in India is

• A. 85 per cent for males and 70 per cent for females
• B. 70 per cent for males and 85 per cent for females
• C. 65 per cent for males and 50 per cent for females
• D. 100 per cent for both males and females

Q10. 'capital' is defined as

• A. Only money kept in a bank account
• B. Money plus human-made resources that are used to produce goods and services
• C. Natural resources gifted by nature, such as soil and minerals
• D. The number of workers employed by a business

Q11. (margin) defines 'interest' as

• A. An amount of money paid regularly by a company to its shareholders out of its profits
• B. The amount of money paid by the borrower of a loan to the lender for using their money for a specific time
• C. Tax paid to the government on a business's profits
• D. Rent paid for using a factory building

Q12. 'entrepreneurship' is defined as

• A. Buying shares of a large company on the stock market
• B. Starting your own business or creating something new to solve a problem
• C. Working for a salary in a government office
• D. Saving money in a bank to earn interest

Q13. According to the case study in which year was J.R.D. Tata awarded the Bharat Ratna, India's highest civilian award?

• A. 1904
• B. 1932
• C. 1992
• D. 2017

Q14. 'technology' is defined as

• A. Only computers, smartphones and the internet
• B. The application of scientific knowledge
• C. A factor of production equal in importance to land and labour
• D. Money used to buy machines for a factory

Q15. 'Don't Miss Out' box says India was the first nation in the world to bring a Corporate Social Responsibility (CSR) law. In which year was this law brought, and what does it mandate companies to spend on CSR activities?

• A. 2009 — 1 per cent of last year's profit
• B. 2014 — 2 per cent of average profits of the last three years
• C. 2016 — 5 per cent of total revenue
• D. 2020 — 10 per cent of net profit