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Question (11)

QN0029683

A business has excellent workers, modern machinery and sufficient land. Yet production remains low because no one coordinates activities properly. Which factor is missing?

(A) Labour
(B) Human capital
(C) Entrepreneurship
(D) Natural resources

Correct Answer: C

Explanation:

Entrepreneurship organises and coordinates all other factors of production.

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Question (12)

QN0029684

The output of a factory increases from 4,000 units to 5,200 units after introducing new technology. What is the percentage increase in output?

(A) 20%
(B) 25%
(C) 30%
(D) 35%

Correct Answer: C

Explanation:

Increase = 1,200 units. Percentage increase = (1,200 ÷ 4,000) × 100 = 30%.

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Question (13)

QN0029685

Which of the following best illustrates the complementary nature of factors of production?

(A) Land alone producing goods
(B) Labour working without tools or resources
(C) Machines operating without workers or managers
(D) Land, labour, capital and entrepreneurship working together

Correct Answer: D

Explanation:

Production requires the coordinated use of all factors.

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Question (14)

QN0029686

A company spends ₹12 lakh on employee training and ₹48 lakh on machines. What percentage of the total investment is devoted to human capital?

(A) 15%
(B) 20%
(C) 25%
(D) 30%

Correct Answer: B

Explanation:

Total investment = ₹60 lakh. Human capital share = (12 ÷ 60) × 100 = 20%.

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Question (15)

QN0029687

A start-up develops an online learning platform that allows students in remote areas to access courses. This example primarily highlights technology's role in:

(A) Reducing natural resources
(B) Expanding access to knowledge
(C) Eliminating entrepreneurship
(D) Replacing all forms of labour

Correct Answer: B

Explanation:

Technology helps spread education and skill development opportunities.

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Question (16)

QN0029688

A business earns average profits of ₹50 crore over the last three years. Under India's CSR requirement of 2%, how much should it spend on CSR activities?

(A) ₹50 lakh
(B) ₹75 lakh
(C) ₹1 crore
(D) ₹2 crore

Correct Answer: C

Explanation:

CSR Spending = 2% of ₹50 crore = ₹1 crore.

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Question (17)

QN0029689

A company decides to reduce pollution, provide employee welfare programmes and support local communities. These actions are examples of:

(A) Human capital formation
(B) Capital accumulation
(C) Corporate Social Responsibility
(D) Working capital management

Correct Answer: C

Explanation:

CSR refers to a business's responsibility towards society and the environment.

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Question (18)

QN0029690

If a business loses access to its factory building due to a legal dispute, which factor of production is directly affected?

(A) Land
(B) Labour
(C) Human capital
(D) Entrepreneurship

Correct Answer: A

Explanation:

Land includes all sites and locations used for production activities.

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Question (19)

QN0029691

A garment unit produces 2,000 shirts using 20 workers. After introducing better technology, it produces 3,000 shirts with the same workforce. What is the increase in labour productivity?

(A) 25%
(B) 40%
(C) 50%
(D) 60%

Correct Answer: C

Explanation:

Productivity rises from 100 shirts per worker to 150 shirts per worker. Percentage increase = 50%.

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Question (20)

QN0029692

Which statement is most accurate?

(A) Human capital and physical capital mean the same thing.
(B) Technology can improve the effectiveness of all factors of production.
(C) Land is the only factor responsible for production.
(D) Entrepreneurship is unnecessary when capital is abundant.

Correct Answer: B

Explanation:

Technology increases the productivity of land, labour, capital and entrepreneurship, making production more efficient.

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Question (11)

A business has excellent workers, modern machinery and sufficient land. Yet production remains low because no one coordinates activities properly. Which factor is missing?

Explanation:

Link:

Question (12)

The output of a factory increases from 4,000 units to 5,200 units after introducing new technology. What is the percentage increase in output?

Explanation:

Link:

Question (13)

Which of the following best illustrates the complementary nature of factors of production?

Explanation:

Link:

Question (14)

A company spends ₹12 lakh on employee training and ₹48 lakh on machines. What percentage of the total investment is devoted to human capital?

Explanation:

Link:

Question (15)

A start-up develops an online learning platform that allows students in remote areas to access courses. This example primarily highlights technology's role in:

Explanation:

Link:

Question (16)

A business earns average profits of ₹50 crore over the last three years. Under India's CSR requirement of 2%, how much should it spend on CSR activities?

Explanation:

Link:

Question (17)

A company decides to reduce pollution, provide employee welfare programmes and support local communities. These actions are examples of:

Explanation:

Link:

Question (18)

If a business loses access to its factory building due to a legal dispute, which factor of production is directly affected?

Explanation:

Link:

Question (19)

A garment unit produces 2,000 shirts using 20 workers. After introducing better technology, it produces 3,000 shirts with the same workforce. What is the increase in labour productivity?

Explanation:

Link:

Question (20)

Which statement is most accurate?

Explanation:

Link:

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