Theme 1.1 Economic Groups And Factors Of Production

Question 1

What are the four factors of production?

Answer 1

Land, labor, capital, and enterprise. CELL

Question 2

True or False: Labor is considered a factor of production.

Answer 2

True

Question 3

Fill in the blank: The physical and mental effort used in the production of goods and services is known as ___.

Answer 3

labor

Question 4

Which factor of production includes natural resources?

Answer 4

Land

Question 5

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

Answer 5

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

Question 6

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

Answer 6

C) Profit

Question 7

What is entrepreneurship?

Answer 7

Entrepreneurship is the ability to combine the other factors of production to create goods and services and take on the risks associated with this process.

Question 8

True or False: Capital can only refer to money.

Answer 8

False

Question 9

Fill in the blank: The economic group that includes individuals who provide labor is called ___.

Answer 9

workers

Question 10

What is an economic group?

Answer 10

An economic group consists of individuals or organizations that share a common economic interest.

Question 11

Multiple Choice: Which group is typically responsible for the production of goods? A) Consumers B) Producers C) Government D) None of the above

Answer 11

B) Producers

Question 12

What do we call the factor of production that involves the use of technology?

Answer 12

Capital

Question 13

True or False: Land can include both natural resources and physical space.

Answer 13

True

Question 14

Fill in the blank: The combination of all factors of production to create a product is known as ___.

Answer 14

production process

Question 15

What is the primary economic role of consumers?

Answer 15

Consumers purchase goods and services to satisfy their needs and wants.

Question 16

Multiple Choice: Which factor of production is considered the ‘risk-taker’? A) Labor B) Capital C) Land D) Entrepreneurship

Answer 16

D) Entrepreneurship

Question 17

What term describes the return on investment for capital?

Answer 17

Interest

Question 18

True or False: Workers are considered a type of capital.

Answer 18

False

Question 19

Fill in the blank: The primary resource for agricultural production is ___.

Answer 19

land

Question 20

What is the significance of the factor of production known as land?

Answer 20

Land provides the natural resources necessary for production.

Question 21

Multiple Choice: Which factor of production is most affected by education and training? A) Land B) Labor C) Capital D) Entrepreneurship

Answer 21

B) Labor

Question 22

What is the term for the payment made to labor?

Answer 22

Wages

Question 23

True or False: Capital can include intangible assets like patents.

Answer 23

True

Question 24

Fill in the blank: The skills and abilities of workers can enhance the ___ of labor.

Answer 24

productivity

Question 25

What is the main purpose of entrepreneurship in the economy?

Answer 25

To innovate and create new products and services.

Question 26

Multiple Choice: Which economic group typically consumes the majority of goods and services? A) Producers B) Consumers C) Government D) Investors

Answer 26

B) Consumers

Question 27

What type of economic group includes businesses and firms?

Answer 27

Producers

Question 28

True or False: The factors of production are interchangeable.

Answer 28

False

Question 29

Fill in the blank: The combination of natural resources, labor, capital, and entrepreneurship is necessary for ___.

Answer 29

production

Question 30

What is the relationship between factors of production and economic groups?

Answer 30

Economic groups utilize the factors of production to create goods and services and fulfill their roles in the economy.

Question 31

Multiple Choice: Which of the following is a characteristic of labor as a factor of production? A) It is stationary B) It can be trained C) It is always available D) It is fixed

Answer 31

B) It can be trained

Question 32

What is a Consumer?

Answer 32

A person or organisation that directly uses a good or service.

Question 33

What does Interdependence mean?

Answer 33

The state of being dependent upon others.

Question 34

What is Production?

Answer 34

The total output of goods and services produced by a firm or industry in a time period.

Question 35

What is a Government?

Answer 35

A political authority that decides how a country is run and manages its operations.

Question 36

What is a Producer?

Answer 36

A person, company or country that makes, grows or supplies goods and/or services.

Question 37

What is Enterprise?

Answer 37

The factor of production that takes a risk in organising the other factors of production.

Question 38

What is a Good?

Answer 38

A tangible product; one that can be seen or touched.

Question 39

What is a Service?

Answer 39

An intangible product; one that cannot be seen or touched.