Multiple Choice Questions (MCQs)
Q1. Which of the following is not a factor of production?
(a) Land
(b) Labour
(c) Money
(d) Entrepreneurship
Q2. In economics, “land” refers to—
(a) Only soil and ground
(b) All natural resources used for production
(c) Only forests
(d) Only minerals
Q3. Human effort, both physical and mental, used in the production process is called—
(a) Capital
(b) Labour
(c) Entrepreneurship
(d) Technology
Q4. The knowledge, skills, and expertise of workers are called—
(a) Land
(b) Human capital
(c) Physical labour
(d) Entrepreneurship
Q5. Which two main facilitators help build strong human capital?
(a) Wealth and inheritance
(b) Education and healthcare
(c) Minerals and forests
(d) Elections and democracy
Q6. Capital in production refers to—
(a) Only money
(b) Durable assets like machinery, tools, and buildings plus money
(c) Only human resources
(d) Only natural resources
Q7. The person who takes risk, combines resources, and creates businesses is called—
(a) Worker
(b) Capitalist
(c) Entrepreneur
(d) Educator
Q8. Which Indian business leader founded India’s first airline in 1932?
(a) Dhirubhai Ambani
(b) J.R.D. Tata
(c) Ratan Tata
(d) Verghese Kurien
Q9. Which of the following shows how technology helps production?
(a) Pulleys and wheelbarrows in ancient times
(b) UPI for faster payments today
(c) Drones spraying fertilizers
(d) All of these
Q10. India became the first country in 2014 to pass a law requiring companies to spend part of their profits on—
(a) Exports
(b) Corporate Social Responsibility
(c) Workers’ salaries
(d) Import duties
Match the Following
True or False
Q1. Human capital is the same as human labour.
Q2. Education and training improve the productivity of workers.
Q3. J.R.D. Tata started the first steel plant in India.
Q4. Technology reduces barriers to learning and jobs.
Q5. In economics, capital also includes buildings, tools, and machinery.
Q6. CSR (Corporate Social Responsibility) means ignoring society’s welfare and focusing only on profits.
Fill in the Blanks
Q1. The four main factors of production are land, labour, capital, and ______.
Q2. Knowledge and skills that make labour more effective are called ______ capital.
Q3. Good ______ helps workers be healthy and productive.
Q4. The concept of kaizen, meaning continuous improvement, comes from ______.
Q5. J.R.D. Tata founded ______ Airlines in 1932.
Q6. Money borrowed from a bank must be repaid with ______.
Q7. In 2014, India made CSR spending by companies ______ under law.
Very Short Answer Questions
Q1. Define factors of production.
Q2. Give two examples of natural resources used in production.
Q3. What is the difference between labour and human capital?
Q4. Name two ways societies can build human capital.
Q5. What is capital? Give one example.
Q6. Who is called an entrepreneur?
Q7. Mention one contribution of J.R.D. Tata to India.
Q8. Give two examples of technology used in modern production.
Q9. What does CSR stand for?
Q10. Why should factors of production be used responsibly?
You can find Worksheet Solutions here: Worksheet Solutions: Factors of Production