MCQs-Chapter 7- Factors of Production- Class 8- Social Science

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:

Land as a factor of production includes all natural resources. – True
Wages are the reward for capital. – False
Entrepreneurship involves risk-taking and innovation. – True
Capital is considered a natural resource. – False
Human capital is created through education and training. – True
Rent is the reward for land. – True
Labour is both physical and mental work of humans. – True
Money is considered a factor of production. – False
The reward for entrepreneurship is profit. – True
All factors of production are equally scarce. – False

Fill in the blanks:

The four main factors of production are land, labour, capital, and ______. – Entrepreneurship
The income earned by land is called ______. – Rent
______ capital refers to education, skills, and health of people. – Human
Interest is the reward for ______. – Capital
Labour is rewarded with ______. – Wages
Innovation is the key role of ______. – Entrepreneurship
Capital is formed through ______ and investment. – Savings
Fertile soil and minerals are examples of ______. – Land
Physical capital includes machines, tools, and ______. – Buildings
Risk-taking in business is done by the ______. – Entrepreneur

Match the Following:

Land – (a) Wages
Labour – (b) Skills and education
Capital – (c) Rent
Entrepreneurship –(d) Interest
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