Multiple
Choice Questions in Class VIII for the Chapter 7 (Factors of Production)
in Subject Socia Science(Economics)
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Multiple
Choice Questions:
1. How many
primary factors of production are there?
a) Two
b) Three
c) Four
d) Five
Ans: c)
Four
2. Which of
the following is NOT a factor of production?
a) Land
b) Labour
c) Money
d) Entrepreneurship
Ans: c)
Money
3. Which
factor of production refers to all natural resources?
a) Land
b) Labour
c) Capital
d) Entrepreneurship
Ans: a)
Land
4. Wages are
the reward for:
a) Land
b) Labour
c) Capital
d) Entrepreneurship
Ans: b)
Labour
5. Rent is the
reward for:
a) Labour
b) Land
c) Capital
d) Entrepreneurship
Ans: b)
Land
6. Profit is
the reward for:
a) Capital
b) Labour
c) Entrepreneurship
d) Land
Ans: c)
Entrepreneurship
7. Interest is
the reward for:
a) Capital
b) Land
c) Labour
d) Entrepreneurship
Ans: a)
Capital
8. Which of
the following is an example of physical capital?
a) Factory machines
b) Knowledge
c) Manager’s skills
d) Worker’s effort
Ans: a)
Factory machines
9. Human
capital refers to:
a) Buildings and machines
b) Workers’ skills and education
c) Natural resources
d) Bank deposits
Ans: b)
Workers’ skills and education
10. Which of
the following is NOT included in land as a factor?
a) Minerals
b) Sunlight
c) Human labour
d) Forests
Ans: c)
Human labour
11. Which
factor is called the “driving force” of production?
a) Land
b) Labour
c) Capital
d) Entrepreneurship
Ans: d)
Entrepreneurship
12. Which
factor combines the other three factors of production?
a) Labour
b) Land
c) Entrepreneurship
d) Capital
Ans: c)
Entrepreneurship
13. Education
primarily contributes to:
a) Physical capital
b) Human capital
c) Natural resources
d) Land
Ans: b)
Human capital
14. Which
factor of production is considered man-made?
a) Land
b) Capital
c) Labour
d) Climate
Ans: b)
Capital
15. Which of
the following is an example of labour?
a) A farmer tilling the land
b) A tractor
c) A bank loan
d) A shop building
Ans: a)
A farmer tilling the land
16. The income
earned by capital is called:
a) Rent
b) Profit
c) Interest
d) Wages
Ans: c)
Interest
17. A
successful entrepreneur must have:
a) Only natural resources
b) Only money
c) Risk-taking ability and innovation
d) A government job
Ans: c)
Risk-taking ability and innovation
18. Which
factor is scarce and cannot be increased by humans?
a) Land
b) Labour
c) Capital
d) Entrepreneurship
Ans: a)
Land
19. Which of
the following is an example of human capital?
a) Literacy rate
b) Gold reserves
c) Machines
d) Fertile soil
Ans: a)
Literacy rate
20. Capital
formation depends on:
a) Savings and investment
b) Climate
c) Government only
d) Labour unions
Ans: a)
Savings and investment
21. Which
factor of production is considered passive?
a) Land
b) Labour
c) Capital
d) Entrepreneurship
Ans: a)
Land
22. Which
factor of production can be improved with training?
a) Land
b) Labour
c) Capital
d) Soil fertility
Ans: b)
Labour
23. Physical
and human capital are considered:
a) Natural resources
b) Man-made resources
c) Government-owned resources
d) Passive resources
Ans: b)
Man-made resources
24. Risk-bearing
is a function of:
a) Labour
b) Capital
c) Entrepreneurship
d) Land
Ans: c)
Entrepreneurship
25. Which one
among the following is a renewable resource?
a) Coal
b) Minerals
c) Forests
d) Oil
Ans: c)
Forests
26. Which
factor of production provides initiative and innovation?
a) Capital
b) Labour
c) Entrepreneurship
d) Land
Ans: c)
Entrepreneurship
27. Which
factor of production is most influenced by technology?
a) Land
b) Labour
c) Entrepreneurship
d) Human capital
Ans: d)
Human capital
28. Which of
the following is NOT an example of capital?
a) Tools
b) Money
c) Machines
d) Factory building
Ans: b)
Money
29. Which
factor is directly linked to productivity growth in modern economies?
a) Land
b) Labour
c) Human capital
d) Forests
Ans: c)
Human capital
30. The skill
of a software engineer is an example of:
a) Labour
b) Human capital
c) Physical capital
d) Entrepreneurship
Ans: b)
Human capital
True
/ False:
1.
Land as a factor of production includes all natural
resources. – True
2.
Wages are the reward for capital. – False
3.
Entrepreneurship involves risk-taking and innovation.
– True
4.
Capital is considered a natural resource. – False
5.
Human capital is created through education and training.
– True
6.
Rent is the reward for land. – True
7.
Labour is both physical and mental work of humans.
– True
8.
Money is considered a factor of production. – False
9.
The reward for entrepreneurship is profit. – True
10. All
factors of production are equally scarce. – False
Fill
in the blanks:
1.
The four main factors of production are land, labour,
capital, and ______. – Entrepreneurship
2.
The income earned by land is called ______. – Rent
3.
______ capital refers to education, skills, and health of
people. – Human
4.
Interest is the reward for ______. – Capital
5.
Labour is rewarded with ______. – Wages
6.
Innovation is the key role of ______. – Entrepreneurship
7.
Capital is formed through ______ and investment. – Savings
8.
Fertile soil and minerals are examples of ______. – Land
9.
Physical capital includes machines, tools, and ______.
– Buildings
10. Risk-taking
in business is done by the ______. – Entrepreneur
Match
the Following:
1.
Land –
(a) Wages
2.
Labour –
(b) Skills and education
3.
Capital –
(c) Rent
4.
Entrepreneurship –(d)
Interest
5.
Human capital –
(e) Profit
Ans: 1
→ c, 2 → a, 3 → d, 4 → e, 5 → b
Assertion–Reasoning:
1.
Assertion (A): Human capital is more important than physical capital in
modern economies.
Reason (R): Education and skills increase productivity and innovation.
- a) Both A and R are true, and R explains A
- b) Both A and R are true, but R does not explain A
- c) A is true, R is false
- d) Both are false
Ans: a) Both A and R are true, and R explains A
2.
Assertion (A): Land is considered an active factor of production.
Reason (R): Land is man-made and increases with human effort.
- a) Both A and R are true, and R explains A
- b) Both A and R are true, but R does not explain A
- c) A is true, R is false
- d) Both are false
Ans: d) Both are false
3.
Assertion (A): Entrepreneurship combines land, labour, and capital effectively.
Reason (R): Entrepreneurs organize production and take risks for
profit.
- a) Both A and R are true, and R explains A
- b) Both A and R are true, but R does not explain A
- c) A is true, R is false
- d) Both are false
Ans: a) Both A and R are true, and R explains A
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To
Learn More Click Below:
MCQs-:
Chapter-1 Natural resources and
Their Use - CLICK HERE
Chapter-2 Reshaping India's
Political Map - CLICK HERE
Chapter-3 The Rise of the
Marathas - CLICK HERE
Chapter-4 The Colonial Era in India - CLICK HERE
Chapter-5 Universal
Franchise and India’s Electoral System - CLICK HERE
Chapter-6 The Parliamentary
System Legislature and Executive - CLICK HERE
Chapter-7 Factors of Production
- CLICK HERE
To
Learn More Click Below:
NCERT
Solutions:
Chapter-1 Natural resources and
Their Use - CLICK HERE
Chapter-2 Reshaping India's
Political Map - CLICK HERE
Chapter-3 The Rise of the
Marathas - CLICK HERE
Chapter-4 The Colonial Era in India - CLICK HERE
Chapter-5 Universal
Franchise and India’s Electoral System - CLICK HERE
Chapter-6 The Parliamentary
System Legislature and Executive - CLICK HERE
Chapter-7 Factors of Production
- CLICK HERE
