Factors of Production

Question 1

What is Production?

Answer 1

Production is the process of using materials (inputs) and transforming them to produce goods and services (outputs) that satisfy wants and needs

Question 2

The term ‘factors of production’ refers to…

Answer 2

the resources that are combined in the production process to make goods

Question 3

Land includes…

Answer 3

All renewable and non-renewable resources

Question 4

What is Labor?

Answer 4

Any human effort – mental or physical that is used in the creation of goods and services.

Question 5

List the types of Labor

Answer 5

• unskilled
• semi-skilled
• skilled
• professional

Question 6

Define the term ‘Capital’

Answer 6

any man-made resources or goods used by a business used in the production of goods and services.

Question 7

Fixed capital is…

Answer 7

any man-made resources that does not get consumed for production

Question 8

Working capital is…

Answer 8

any asset or man-made resources that is consumed during the production process

Question 9

Venture capital is…

Answer 9

A form of financing that provides funds to early stage, emerging companies with high growth potential, in exchange for equity.

Question 10

Who is the entrepreneur?

Answer 10

The owner and risk taker in a business venture who is responsible for organizing all the other factors of production to produce a product that will allow the business to make a profit.