CBSE Class 12 Economics Production Worksheet

Question. Work of a Professional (like Chartered Accountant) does not result in any tangible output. Hence, it is not a Production Activity in Economics.
This statement is —
(a) True
(b) False
(c) Partially True
(d) None of the above
Answer: B

Question. Which of these is a Production Activity?
(b) Sale of Crackers during Festival Season
(c) Distributing Water Packets in a temple festival
(d) All of the above
Answer: D

Question. Which of these is not a method of creating Utility in Production?
(a) Form Uti lity
(b) Marginal Utility
(c) Place Utility
(d) Personal Utility
Answer: B

Question. Utility refers to physically changing the form of natural resources.
(a) Form Utility
(b) Place Utility
(c) Time Utility
(d) Personal Utility
Answer: A

Question. Production is a / an activity.
(a) Chari table
(b) Benef icial
(c) Economic
(d) Successful
Answer: C

Question. If Apples from Kashmir are available for Sale in Chennai, it refers to creation of —
(a) Form Utility
(b) Place Utility
(c) Time Utility
(d) Personal Utility
Answer: B

Question. If Land is used for productive purposes, its fertility is reduced. Such fertility —
(a) Can be restored
(b) Cannot be restored at all
(c) Is lost forever
Answer: A

Question. Production does not consist of which of the
(a) Changing the from of natural resources
(b) Changing the place of the resources
(c) Both of the above
(d) None of the above
Answer: D

Question. When Bangles and Ear—Rings are made from Gold, we refer to creation of —
(a) Form Utility
(b) Place Utility
(c) Time Utility
(d) Personal Utility
Answer: A

Question. If Garments from Tirupur are avai lable for Sale in a Store in USA, it refers to creation of —
(a) Form Utility
(b) Place Utility
(c) Time Utility
(d) Personal Utility
Answer: B

Question. Moving or distributing goods from places of production (Origin Centres) to Markets (destination centres) refers to creation of —
(a) Form Utility
(b) Place Utility
(c) Time Utility
(d) Personal Utility
Answer: B

Question. Extraction from coal, minerals, gold, etc. from Earth, refers to creation of —
(a) Form Utility
(b) Place Utility
(c) Time Utility
(d) Personal Utility
Answer: B

Question. As a Factor of Production, "Labour" is perishable. The consequence of this is —
(a) There is no Reserve Price for Labour.
(b) The Labourer has to accept the wage offered to him.
(c) The Labour has weak bargaining power.
(d) All of the above
Answer: D

Question. Place Utility involves Changing the place of the resources, from the place where they are of ....... use, to another place where they are of ............... .use.
(a) Lesser, greater
(b) Greater, lesser
(c) Specific, general
(d) General , specific
Answer: A

Question. Storing harvested foodgrains for use till next harvest is an example of creation of —
(a) Form Utility
(b) Place Utility
(c) Time Utility
(d) Personal Utility
Answer: C

Question. Which of the following is a factor(s) of production?
(a) Labour
(b) Capi tal
(c) Entrepreneurship
(d) All of these
Answer: D

Question. As a Factor of Production, the Supply of Land is perfectly inelastic from the viewpoint of —
(a) The entire economy
(b) An Individual Firm
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: D

Question. Work of Professionals like Doctors, Chartered Accountants, etc. can be considered under —
(a) Form Utility
(b) Place Utility
(c) Time Utility
Answer: D

Question. Production = Creation of Utility. This statement is
(a) True
(b) False
(c) Partially True
(d) None of the above
Answer: A

Question. Production = Satisfaction of Utility. This statement is
(a) True
(b) False
(c) Partially True
(d) None of the above
Answer: B

Question. Utility is created by making goods and services available at times when they are not normally available.
(a) Form Utility
(b) Place Utility
(c) Time Utility
(d) Personal Utility
Answer: C

Question. Utility involves making use of personal skills in the form of services.
(a) Form Utility
(b) Place Utility 
(c) Time Utility
(d) Personal Utility
Answer: D

Question. In Economics, Production refers to any economic activity —
(a) Which results in a tangible product or commodity
(b) Which is directed at the satisfaction of human wants.
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: B

Question. The demand for a Factor of Production is said to be a Derived Demand because—
(a) It is a function of the profitability of an enterprise
(b) It depends on the supply of complementary factors
(c) Its stems from the demand for the final product
Answer: C

Question. The Incentive / Reward in respect of Land is called —
(a) Rent
(b) Wages
(c) Inte re st
(d) Profit
Answer: A

Question. Land refers to —
(a) All free gifts of nature.
(b) All man—made resources
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: A

Question. Generally, Supply of Labour and Wage Rates rates, there is a paradox of excess supply of Labour. This paradox is attributed to —
(a) Some more members of the family, who were not working before, may start working.
(b) Workers may prefer to work overtime to increase their earnings.
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: C

Question. Capital QuestionFormation means —
(a) A sustained increase in the stock of real capital in a country.
(b) Production of more capital goods, which are used for further production of goods.
(c) Investment
(d) All of the above
Answer: D

Question. Land refers to —
(a) Soil and earth's surface
(b) Fertility of soil
(c) Natural resources
(d) All of the above
Answer: D

Question. Gold Mines is an example of , as a Factor of Production.
(a) Land
(b) Labour
(c) Capital
(d) Entrepreneurial Skills
Answer: A

Question. Which of these is an example of Land as a Factor of Production?
(a) Agricultural Lands
(b) Forests
(c) Diamond Mines
(d) All of the above
Answer: D

Question. The Incentive / Reward in respect of Entrepreneurial Ability is called —
(a) Rent
(b) Wages
(c) Interest
(d) Profit
Answer: D

Question. A Labourer cannot store his Labour, for use at a later time. This statement is —
(a) True
(b) False
(c) Partially True
(d) None of the above
Answer: A

Question. Which of these is included in "Land" as a Factor of Production?
(a) Fertility of Soil
(b) Water
(c) Air
(d) All of the above
Answer: D

Question. In Economics, Production refers —
(a) Creation of uti l ity
(b) Satisfaction of utility
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: A

Question. As a Factor of Production, Land is —
(a) Permanent
(b) Original and indestructible
(c) Free gift of nature
(d) All of above are correct.
Answer: D

Question. As a Factor of Production, Land is —
(a) Fixed in quantity
(b) Variable in quantity
(c) Not quantifiable at all
(d) Not useful for production.
Answer: A

Question. As a Factor of Production, "Land" is a .............means of Production.
(a) Original
(b) Produced
(c) Derived
(d) Monetary
Answer: A

Question. Which of the following statement is True?
Production can be defined as—
(a) Creation or addition of utility
(b) Conversion of raw material into finished goods
(c) An activity of making something immaterial
(d) All of these
Answer: A

Question. Making Furniture from raw Wood is an example of creation of —
(a) Form Utility
(b) Place Utility
(c) Time Utility
(d) Personal Utility
Answer: A

Question. To complete production, all four types of utilities, i.e. Form, Place, Time and Personal Utility, should be created. This statement is —
(a) True
(b) False
(c) Partially True
(d) None of the above
Answer: B

Question. Since there is no Reserve Price, Labour has —
(a) Weak bargaining power
(b) Strong bargaining power
(c) No bargaining power
(d) Infinite bargaining power
Answer: A

Question. As a Factor of Production, the Supply of Land is relatively elastic from the viewpoint of —
(a) The entire economy
(b) An Individual Firm
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: B

Question. As a Factor of Production, Land is permanent.
This means that Land —
(a) Remains before and after cultivation
(b) Cannot be destroyed or lost
(c) Cannot be used for production at all
(d) None of the above
Answer: B

Question. As a Factor of Production, Land has certain inherent properties, e.g. Fertility. These properties are —
(a) Indestructible
(b) Original
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: C

Question. The Incentive / Reward in respect of Labour is called
(a) Rent
(b) Wages
(c) Interest
(d) Profit
Answer: B

Question. The Incentive / Reward in respect of Capital is called
(a) Rent
(b) Wages
(c) Interest
(d) Profit
Answer: C

Question. As a Factor of Production, Land lacks mobility in the ..........\sense.
(a) Geographical
(b) Utility
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: A

Question. As a Factor of Production, Land is mobile across
(a) Places
(b) Use s
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: B

Question. No two pieces of land are exactly alike in all respects. This statement is —
(a) True
(b) Fal se
(c) Partially True
(d) None of the above
Answer: A