A Level Production Theory Quizzes

Revising the Production Theory with Quizzes

(Production Theory Quizzes for students doing the GCE A level, GCSE or necta)

In this aspect of Economics, we are going to be look what the production theory is all about and the factors of production.

To begin, What is Production? According to the Oxford Learners dictionary, production is the action of making or manufacturing from components or raw materials, or the process of being so manufactured. In other word, it is the process of using raw materials to produce other materials thereby adding the value of the material.  

The Production Theory is therefore a push to clarify the standards by which a business firm chooses how much every ware that it sells, it will create and the amount of every sort of work, fixed capital merchandise, crude material and other that it utilizes.

Factors of production 

According to Ulmer, “The  sources of services which enter into the process  of production are called factors of production.”  In straightforward words, factors of production are those things or administrations utilized or applied to deliver a decent or render a help. These factors include;

Land

Land has an expansive definition as a factor of creation (factor of production) and can take on different structures, from rural land to business land to the assets accessible from a specific real estate parcel. Characteristic assets, for example, oil and gold, can be removed and refined for human use from the land. 

Labor

Labor refers to the exertion used by a person to carry an item or administration to the market. Labor can also take so many forms.

Capital

In economics, capital generally refers to money. Money is not a factor of production, instead, it facilitates the processes by which goods and services are produces. Capital as a factor of production is thereby the buying of goods made with money in production.

Entrepreneurship

This is the combination of all the other factors of production into a product or service for the market.

This online revision platform (gcequiz.com) can be used to test your knowledge in this topic. For more quizzes in Economics, click Here.

Enjoy!!!