Factors of Production

Question 1

What are the four main factors of production?

Answer 1

Land, Labor, Capital, and Entrepreneurship.

Question 2

True or False: Capital refers only to financial resources.

Answer 2

False.

Question 3

Fill in the blank: __________ includes natural resources used to produce goods.

Answer 3

Land

Question 4

Which factor of production is primarily concerned with human effort?

Answer 4

Labor.

Question 5

What is the role of entrepreneurship in the factors of production?

Answer 5

It involves the organization and management of the other factors to create goods and services.

Question 6

Multiple Choice: Which of the following is NOT a factor of production? A) Labor B) Technology C) Land D) Capital

Answer 6

B) Technology.

Question 7

True or False: Land as a factor of production includes both physical land and natural resources.

Answer 7

True.

Question 8

What is capital in the context of factors of production?

Answer 8

Capital refers to the tools, equipment, and buildings used to produce goods and services.

Question 9

Fill in the blank: __________ is the factor of production that requires risk-taking and innovation.

Answer 9

Entrepreneurship

Question 10

Short Answer: How do factors of production interact in the production process?

Answer 10

They work together to create goods and services, with each factor contributing to the overall production.

Question 11

Multiple Choice: Which factor of production is considered the most important? A) Land B) Labor C) Capital D) Entrepreneurship

Answer 11

D) Entrepreneurship.

Question 12

True or False: The availability of factors of production can affect economic growth.

Answer 12

True.

Question 13

What is the economic term for the combination of land, labor, capital, and entrepreneurship?

Answer 13

Factors of Production.

Question 14

Fill in the blank: __________ is the term for the workforce involved in production.

Answer 14

Labor

Question 15

Short Answer: Why is labor considered a variable factor of production?

Answer 15

Because the amount of labor can be adjusted based on production needs.

Question 16

Multiple Choice: Which of the following is an example of capital? A) A factory B) A worker C) A piece of land D) A natural resource

Answer 16

A) A factory.

Question 17

True or False: Factors of production are fixed and cannot change.

Answer 17

False.

Question 18

What is the importance of entrepreneurship in economic development?

Answer 18

It drives innovation, creates jobs, and stimulates economic growth.

Question 19

Fill in the blank: The __________ of production can influence a country’s standard of living.

Answer 19

Factors

Question 20

Short Answer: How does scarcity relate to factors of production?

Answer 20

Scarcity means that resources are limited, impacting how the factors of production are utilized.

Question 21

Multiple Choice: Which factor of production is least tangible? A) Land B) Labor C) Capital D) Entrepreneurship

Answer 21

D) Entrepreneurship.

Question 22

True or False: Land is a renewable resource.

Answer 22

False.

Question 23

What does the term ‘factor market’ refer to?

Answer 23

The marketplace where factors of production are bought and sold.

Question 24

Fill in the blank: __________ is the return on investment for capital in production.

Answer 24

Interest

Question 25

Short Answer: Name one way in which technology can impact factors of production.

Answer 25

It can increase productivity and efficiency.

Question 26

Multiple Choice: What is the primary source of income for labor? A) Rent B) Wages C) Profit D) Interest

Answer 26

B) Wages.

Question 27

True or False: Effective allocation of factors of production can lead to increased efficiency.

Answer 27

True.