Factors Of Production Flashcards
(27 cards)
What are the four main factors of production?
Land, labor, capital, and entrepreneurship.
True or False: Capital refers only to financial resources.
False.
Fill in the blank: The income earned by land is called __________.
Rent.
What is the income earned by labor called?
Wages.
Multiple Choice: Which factor of production is responsible for organizing resources and taking risks?
Entrepreneurship.
What type of cost is associated with the use of land?
Rent costs.
True or False: Labor is considered a tangible factor of production.
False.
Fill in the blank: The income from capital is known as __________.
Interest.
What is the main function of entrepreneurship in production?
To innovate and manage the other factors of production.
Multiple Choice: Which of the following is NOT a factor of production?
Money.
What is the term for the cost of using capital in production?
Interest cost.
True or False: All factors of production are interchangeable.
False.
Fill in the blank: The payment made to labor is known as __________.
Wages.
What do we call the return on entrepreneurship?
Profit.
Multiple Choice: Which factor of production is primarily concerned with physical and natural resources?
Land.
What is the primary cost associated with labor?
Wages.
True or False: Capital can include machinery and tools.
True.
Fill in the blank: The income generated from entrepreneurship is called __________.
Profit.
What is the return on land known as?
Rent.
Multiple Choice: Which of the following is a fixed cost in production?
Rent for factory space.
What is the primary role of labor in production?
To provide human effort and skills.
True or False: The concept of opportunity cost is related to factors of production.
True.
Fill in the blank: The total cost of production is the sum of __________ and __________.
Fixed costs and variable costs.
What is the role of capital in production?
To provide tools and machinery for production.
