NMMS SAT Production 7th Term 2 Question and answer English medium
NMMS SAT Production 7th Term 2 Question and answer English medium
📘 MCQs – Production and Types of Utility
- Which are the two main activities in an
economy?
a) Saving and spending
b) Selling and buying
c) Production and consumption ✅
d) Marketing and investing
✅ Answer: c) Production and consumption - Who are the two kinds of people in the
economy?
a) Traders and investors
b) Producers and consumers ✅
c) Buyers and sellers
d) Retailers and wholesalers
✅ Answer: b) Producers and consumers - What role do consumers play in the
interaction mentioned?
a) Only buyers
b) Only sellers
c) Customers and suppliers ✅
d) Only investors
✅ Answer: c) Customers and suppliers - Who experiences well-being by selling
commodities and services?
a) Consumers
b) Producers ✅
c) Distributors
d) Government
✅ Answer: b) Producers - What is the meaning of production?
a) Buying and selling goods
b) Distribution of goods
c) Creating goods and services with value ✅
d) Importing goods
✅ Answer: c) Creating goods and services with value - What does utility mean in economics?
a) Power to store products
b) Satisfying power of a product ✅
c) Manufacturing capacity
d) Financial power
✅ Answer: b) Satisfying power of a product - Which of the following is an example of
form utility?
a) Cotton converted into clothes ✅
b) Rice transported to Kerala
c) Wheat stored for the future
d) Vegetables sold in a market
✅ Answer: a) Cotton converted into clothes - What is place utility?
a) Product used during festivals
b) Changing form of the product
c) Transporting product from one place to another ✅
d) Saving product for next year
✅ Answer: c) Transporting product from one place to another - Which of the following shows time utility?
a) Rice packed in bags
b) Clothes dyed in factories
c) Wheat stored for future use ✅
d) Cotton sold in markets
✅ Answer: c) Wheat stored for future use - How are utilities classified in economics?
a) By size and cost
b) By company and quality
c) Form utility, time utility, and place utility ✅
d) Demand, price, and brand
✅ Answer: c) Form utility, time utility, and place utility
📘 More MCQs – Production and Utility (Set 2)
- In an economy, who experiences well-being
when they buy and consume goods?
a) Producers
b) Distributors
c) Consumers ✅
d) Wholesalers
✅ Answer: c) Consumers - Which one is not a type of
utility mentioned in the lesson?
a) Place utility
b) Price utility ✅
c) Time utility
d) Form utility
✅ Answer: b) Price utility - Form utility increases when a product’s:
a) Location is changed
b) Form is changed ✅
c) Owner is changed
d) Value is decreased
✅ Answer: b) Form is changed - Example of place utility is:
a) Cotton stitched into shirts
b) Transporting rice from Tamil Nadu to Kerala ✅
c) Storing paddy for a year
d) Selling vegetables locally
✅ Answer: b) Transporting rice from Tamil Nadu to Kerala - The act of creating a good or service with
value is called:
a) Exporting
b) Consumption
c) Production ✅
d) Retailing
✅ Answer: c) Production - Time utility is created when goods are:
a) Exported to another country
b) Sold in bulk
c) Stored for future use ✅
d) Produced in factories
✅ Answer: c) Stored for future use - Which utility is shown when wheat is kept
for later use?
a) Time utility ✅
b) Form utility
c) Price utility
d) Brand utility
✅ Answer: a) Time utility - Consumers can be both customers and:
a) Distributors
b) Suppliers ✅
c) Investors
d) Exporters
✅ Answer: b) Suppliers - What makes the economy function
efficiently?
a) Political rules
b) Government subsidies
c) Interaction between producers and consumers ✅
d) Tax collection
✅ Answer: c) Interaction between producers and consumers - Which activity is related to the value and
utility of goods?
a) Storage
b) Production ✅
c) Wastage
d) Marketing
✅ Answer: b) Production
📘 MCQs – Types & Factors of Production
- How many types of production are there?
a) 2
b) 3 ✅
c) 4
d) 5
✅ Answer: b) 3 - Which of the following is a primary
activity?
a) Teaching
b) Mining ✅
c) Banking
d) Insurance
✅ Answer: b) Mining - The process of manufacturing products from
raw materials is called:
a) Tertiary Production
b) Primary Production
c) Secondary Production ✅
d) Agricultural Production
✅ Answer: c) Secondary Production - Which of these is an example of tertiary
production?
a) Forestry
b) Cloth manufacturing
c) Iron industry
d) Education ✅
✅ Answer: d) Education - Which sector contributes the most to
India’s GDP?
a) Primary sector
b) Secondary sector
c) Tertiary sector ✅
d) Industrial sector
✅ Answer: c) Tertiary sector - Which one is a derived (secondary) factor
of production?
a) Labour
b) Land
c) Organisation ✅
d) Soil
✅ Answer: c) Organisation - Banking is an example of:
a) Primary production
b) Secondary production
c) Tertiary production ✅
d) None of these
✅ Answer: c) Tertiary production - What are the two primary factors of
production?
a) Capital and Labour
b) Organisation and Land
c) Land and Labour ✅
d) Capital and Organisation
✅ Answer: c) Land and Labour - Organisation is also known as:
a) Labour
b) Entrepreneurship ✅
c) Management
d) Ownership
✅ Answer: b) Entrepreneurship - Iron ore belongs to which sector?
a) Tertiary
b) Primary ✅
c) Secondary
d) None
✅ Answer: b) Primary
📘 MCQs – Types & Factors of Production (Set
2)
- Which of the following is an example of
secondary production?
a) Fishing
b) Teaching
c) Cloth production ✅
d) Oil extraction
✅ Answer: c) Cloth production - Primary production includes which of the
following?
a) Banking
b) Manufacturing
c) Agriculture ✅
d) Engineering
✅ Answer: c) Agriculture - Which factor of production is also known
as investment?
a) Land
b) Labour
c) Capital ✅
d) Organisation
✅ Answer: c) Capital - What does tertiary production mainly deal
with?
a) Farming
b) Services ✅
c) Manufacturing
d) Mining
✅ Answer: b) Services - The combination of Land, Labour, and
Capital is called:
a) Production
b) Secondary factor
c) Organisation ✅
d) Labour force
✅ Answer: c) Organisation - Which of the following is not a part of
the primary sector?
a) Agriculture
b) Fishing
c) Iron ore extraction
d) Cloth manufacturing ✅
✅ Answer: d) Cloth manufacturing - Who co-exist in a mixed economy like
India?
a) Labour and Land
b) Teachers and Doctors
c) Private and Public Sectors ✅
d) Farmers and Traders
✅ Answer: c) Private and Public Sectors - What is the main contribution of the
cotton industry?
a) Raw cotton
b) Fertilizers
c) Cloth production ✅
d) Medicine
✅ Answer: c) Cloth production - Which of the following is an example of a
tertiary sector job?
a) Doctor ✅
b) Farmer
c) Miner
d) Engineer
✅ Answer: a) Doctor - Factors of production that are transformed
into output are called:
a) Goods
b) Inputs ✅
c) Services
d) Benefits
✅ Answer: b) Inputs
📘 MCQs – Labour & Division of Labour (8th
Std – TNPSC, NMMS)
- Who introduced the concept of ‘Division of
Labour’?
a) Karl Marx
b) John Maynard Keynes
c) Adam Smith ✅
d) Amartya Sen
✅ Answer: c) Adam Smith - Labour is more perishable than other
factors of production because:
a) It can be stored
b) It can be accumulated
c) It cannot be stored ✅
d) It is renewable
✅ Answer: c) It cannot be stored - Labour is called an active factor of
production because:
a) It requires capital
b) It yields profit
c) It activates land and capital ✅
d) It is mobile
✅ Answer: c) It activates land and capital - What does it mean that ‘labour is not
homogeneous’?
a) All labourers are equal
b) Labourers have different skills ✅
c) Labourers work at the same speed
d) Labourers live in the same place
✅ Answer: b) Labourers have different skills - Which of the following shows that labour
is mobile?
a) Labour can be stored
b) Labour moves from one place to another ✅
c) Labour is the same for everyone
d) Labour is not active
✅ Answer: b) Labour moves from one place to another - Individual labour has limited bargaining
power unless:
a) They get promoted
b) They become rich
c) They form trade unions ✅
d) They change jobs
✅ Answer: c) They form trade unions - Labour cannot be separated from the
labourer. This means:
a) Labour is invisible
b) Labour is inherited
c) Labour and the person are one ✅
d) Labour is permanent
✅ Answer: c) Labour and the person are one - What does ‘division of labour’ mean?
a) Sharing salaries
b) Assigning different jobs to machines
c) Dividing the process and giving work to specialists ✅
d) Hiring more workers
✅ Answer: c) Dividing the process and giving work to specialists - In garment production, division of labour
includes:
a) Only stitching
b) Cutting and stitching of parts ✅
c) Only designing
d) Washing clothes
✅ Answer: b) Cutting and stitching of parts - Which of the following is an example of
division of labour?
a) A tailor doing all tasks himself
b) A farmer harvesting alone
c) One worker cutting cloth, another stitching ✅
d) A driver cleaning his vehicle
✅ Answer: c) One worker cutting cloth, another stitching
📘 MCQs – Labour & Division of Labour (Set 2)
- What happens to labour if it is not used
for a day?
a) It can be reused
b) It increases automatically
c) It is stored for later
d) It is lost forever ✅
✅ Answer: d) It is lost forever - Which factor of production cannot be
postponed or accumulated?
a) Capital
b) Labour ✅
c) Land
d) Machinery
✅ Answer: b) Labour - Which of the following cannot yield much
without labour?
a) Labour
b) Machines
c) Land and Capital ✅
d) Organisation
✅ Answer: c) Land and Capital - Labour is not homogeneous. This means:
a) Labourers work alike
b) Skills differ among people ✅
c) Everyone is equally trained
d) All work is identical
✅ Answer: b) Skills differ among people - Labour moves from low paid to high paid
jobs. This feature is called:
a) Permanence
b) Homogeneity
c) Mobility ✅
d) Activity
✅ Answer: c) Mobility - Labour's bargaining power increases when:
a) They are silent
b) They work alone
c) They form trade unions ✅
d) They change jobs
✅ Answer: c) They form trade unions - Which of these cannot be separated from
the person?
a) Land
b) Capital
c) Labour ✅
d) Machinery
✅ Answer: c) Labour - What is the main benefit of division of
labour?
a) Lower cost of production
b) All workers do the same work
c) Specialisation in tasks ✅
d) Longer working hours
✅ Answer: c) Specialisation in tasks - In the example of garments, division of
labour involves:
a) One person does all tasks
b) Work is shared like stitching buttons, collars ✅
c) No machines are used
d) Exporting without production
✅ Answer: b) Work is shared like stitching buttons, collars - Division of labour is especially useful
in:
a) Self-employment
b) Farming only
c) Large-scale industries ✅
d) Homework
✅ Answer: c) Large-scale industries
📘 MCQs – Division of Labour & Capital (20
Questions)
- What does division of labour improve?
a) Capital
b) Efficiency of labour ✅
c) Raw materials
d) Handicraft skills
✅ Answer: b) Efficiency of labour - Repeating the same task helps in:
a) Creating boredom
b) Making errors
c) Improving skills and efficiency ✅
d) Changing jobs
✅ Answer: c) Improving skills and efficiency - What invention is given as an example
under division of labour?
a) Steam engine
b) Telephone
c) More’s Telegraphic Codes ✅
d) Light bulb
✅ Answer: c) More’s Telegraphic Codes - Division of labour leads to:
a) Less use of machines
b) Use of modern machinery ✅
c) Handmade production
d) More holidays
✅ Answer: b) Use of modern machinery - Which of the following is a merit of
division of labour?
a) Unemployment
b) Waste of raw materials
c) Efficient use of raw materials ✅
d) Less productivity
✅ Answer: c) Efficient use of raw materials - What is a demerit of division of labour?
a) Less machinery
b) Monotony in work ✅
c) Better inventions
d) More job options
✅ Answer: b) Monotony in work - Which feeling may be lost in workers due
to repetition of tasks?
a) Joy
b) Humanity ✅
c) Patience
d) Anger
✅ Answer: b) Humanity - Narrow specialization may lead to:
a) Inventions
b) Time saving
c) Unemployment ✅
d) Promotions
✅ Answer: c) Unemployment - Division of labour may reduce:
a) Modern machines
b) Efficiency
c) Handicrafts ✅
d) Factory production
✅ Answer: c) Handicrafts - Which sector is shown in the image under
division of labour?
a) Automobile
b) IT
c) Garments Export Unit ✅
d) Education
✅ Answer: c) Garments Export Unit
📘 Capital – 10 Questions
- Capital is used to produce:
a) Natural wealth
b) Physical strength
c) Other goods and services ✅
d) Raw materials
✅ Answer: c) Other goods and services - In ordinary language, capital means:
a) Factory
b) Land
c) Money ✅
d) Labour
✅ Answer: c) Money - Capital is a type of:
a) Gift of nature
b) Natural resource
c) Man-made wealth ✅
d) Free service
✅ Answer: c) Man-made wealth - Who defined capital as wealth that yields
income?
a) Adam Smith
b) Karl Marx
c) Marshall ✅
d) Keynes
✅ Answer: c) Marshall - What is NOT considered capital in
economics?
a) Machinery
b) Bank deposits
c) Free gifts of nature ✅
d) Tools
✅ Answer: c) Free gifts of nature - Which of the following is an example of
physical capital?
a) Land
b) Labour
c) Machinery ✅
d) Currency
✅ Answer: c) Machinery - Which is a form of monetary capital?
a) Tools
b) Buildings
c) Bank deposits ✅
d) Seeds
✅ Answer: c) Bank deposits - Capital in economics is used for:
a) Spending only
b) Saving only
c) Producing more wealth ✅
d) Paying salaries
✅ Answer: c) Producing more wealth - According to economics, all wealth is NOT:
a) Useful
b) Capital ✅
c) Money
d) Profitable
✅ Answer: b) Capital - Which of the following is a form of
capital listed in the image?
a) Forests
b) Minerals
c) Shares and securities ✅
d) Human resources
✅ Answer: c) Shares and securities
📘 MCQs – Capital, Entrepreneur, Summary (20
Questions)
- Which of the following is a characteristic
of capital?
a) Capital is natural
b) Capital is passive ✅
c) Capital is compulsory
d) Capital is immobile
✅ Answer: b) Capital is passive - Capital is created by:
a) Nature
b) God
c) Man ✅
d) Wind
✅ Answer: c) Man - Which of the following is NOT a
characteristic of capital?
a) Capital is productive
b) Capital lasts long
c) Capital is a free gift of nature ✅
d) Capital is flexible
✅ Answer: c) Capital is a free gift of nature - Which of these best describes capital?
a) Land and water
b) A gift of nature
c) Involves sacrifice for future gain ✅
d) Provided freely
✅ Answer: c) Involves sacrifice for future gain - Capital has the:
a) Lowest mobility
b) No mobility
c) Highest mobility ✅
d) Fixed place
✅ Answer: c) Highest mobility - Which characteristic is true for capital?
a) Indispensable
b) Flexible ✅
c) Invisible
d) Perishable
✅ Answer: b) Flexible - Capital is:
a) A natural gift
b) Indispensable
c) Man-made ✅
d) Always free
✅ Answer: c) Man-made - Who is called the 'organizer' in
production?
a) Labour
b) Landowner
c) Entrepreneur ✅
d) Capitalist
✅ Answer: c) Entrepreneur - Who bears the risk in production?
a) Capitalist
b) Labour
c) Entrepreneur ✅
d) Consumer
✅ Answer: c) Entrepreneur - An entrepreneur is also called:
a) Owner
b) Investor
c) Organizer ✅
d) Helper
✅ Answer: c) Organizer
📘 Entrepreneur – Characteristics
- Which of the following is a role of an
entrepreneur?
a) Repeating work
b) Taking orders only
c) Identifying investment opportunities ✅
d) Working for wages
✅ Answer: c) Identifying investment opportunities - Entrepreneurs are known as:
a) Money lenders
b) Changing agents of society ✅
c) Government officers
d) Factory machines
✅ Answer: b) Changing agents of society - Which is a characteristic of an
entrepreneur?
a) Cutting cloth
b) Deciding reward payment ✅
c) Avoiding risk
d) Working alone
✅ Answer: b) Deciding reward payment - Entrepreneurship includes:
a) Playing safe
b) Avoiding changes
c) Making innovations ✅
d) Doing same tasks repeatedly
✅ Answer: c) Making innovations - An entrepreneur must be able to:
a) Clean equipment
b) Fix machinery
c) Take risks ✅
d) Avoid planning
✅ Answer: c) Take risks
📘 Summary – Core Concepts
- What is production?
a) Selling products
b) Making money
c) Combining inputs to create something ✅
d) Storing goods
✅ Answer: c) Combining inputs to create something - What does ‘utility’ mean?
a) Cost of a product
b) Value in money
c) Power to satisfy wants ✅
d) Advertising
✅ Answer: c) Power to satisfy wants - Which is NOT a type of production?
a) Primary
b) Modern ✅
c) Secondary
d) Tertiary
✅ Answer: b) Modern - Which are the four factors of production?
a) Land, Labour, Tools, Machines
b) Land, Labour, Capital, Organisation ✅
c) Land, Labour, Money, Goods
d) Labour, Capital, Money, Bank
✅ Answer: b) Land, Labour, Capital, Organisation - Who introduced the concept of 'Division of
Labour'?
a) Karl Marx
b) Marshall
c) Adam Smith ✅
d) Ricardo
✅ Answer: c) Adam Smith
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