Productive Mechanism

Question 1

What is productive mechanism?

Answer 1

The mechanism or system which determines the production of various goods and services in the economy

Question 2

What is production?

Answer 2

The process of creating various goods and services which are consumed by the people of the country

Question 3

What is input or factor of production?

Answer 3

Anything that is used in the production process is called input or factor of production

Question 4

What is output?

Answer 4

Whatever is obtained from the process of production is called output

Question 5

What is utility?

Answer 5

The want satisfying power of a commodity is called utility
OR
The power of a commodity to satisfy human wants is called Utility

Question 6

What are the types of utilities?

Answer 6

1. Form Utility
2. Place Utility
3. Service Utility
4. Time Utility

Question 7

How is form utility created?

Answer 7

By changing the form of a commodity

Question 8

How is place utility created?

Answer 8

By changing the location of a commodity

Question 9

How is service utility created?

Answer 9

By performing services

Question 10

How is time utility created?

Answer 10

By making stock of goods at one period of time, and by supplying it at another period of time

Question 11

____________ creates time utility by maintaining buffer stocks

Answer 11

Food Corporation of India (FCI)

Question 12

In primitive economies, production was mainly for ___________

Answer 12

self consumption

Question 13

What are the determinants of volume of production?

Answer 13

1. Natural Resources
2. Technology
3. Role of the Government
4. Factors of Production

Question 14

Production depends on the available ____________

Answer 14

natural resources

Question 15

Land, labour, capital, oranisation are considered to be the ___________ of production

Answer 15

agents or factors

Question 16

What do you mean by factors of production? Name them

Answer 16

The goods and services with the help of which the process of production is carried out, are called factors of production. They are:
Land 
Labour
Capital
Organisation

Question 17

What is land?

Answer 17

Land is defined to include not only land surface but also all the other free gifts of nature

Question 18

To be considered an agent of production, a factor must be ____________________ and ___________________

Answer 18

amenable to human control and people should be able to control it’s supply

Question 19

What is labour?

Answer 19

The physical or mental effort exerted for the purpose of producing a commodity or a service

Question 20

What is capital?

Answer 20

Produced means of production

Question 21

………………………… of the government affects the volume of total production in a country

Answer 21

economic policies

Question 22

The government can also affect the production by improving the supply of various …………………………

Answer 22

infrastructural facilities

Question 23

Another name for organisation?

Answer 23

entrepreneurship

Question 24

………………………….. utility is created when wood is turned into a table

Answer 24

form utility

Question 25

…………………. utility is created when a commodity is moved from one location to the other

Answer 25

place utility

Question 26

The services provided by middlemen, lawyers, doctors and teachers create ……………… utility

Answer 26

service utility

Question 27

Production for ………………………… cannot be considered as production

Answer 27

self consumption

Question 28

Who included all natural resources under the heading of land?

Answer 28

Prof. Alfred Marshall