Multiple Choice
In the context of factors of production, utilization is defined as the ratio of:
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0. Basic Principles of Economics
Factors of Production
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which term refers to the creation of finished goods and services using the factors of production?
A
Production
B
Consumption
C
Exchange
D
Distribution
Verified step by step guidance1
Understand the key terms related to economic activities: Production, Consumption, Exchange, and Distribution.
Define Production as the process of combining various factors of production (land, labor, capital, and entrepreneurship) to create finished goods and services.
Recognize that Consumption refers to the use of goods and services by consumers to satisfy their needs and wants.
Identify Exchange as the act of trading goods and services between buyers and sellers.
Understand Distribution as the process of allocating the produced goods and services among members of society.
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