Factors of Production quiz #1 Flashcards
Factors of Production quiz #1
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Which of the following statements about factors of production is the most accurate? Factors of production include land, labor, capital, human capital, and entrepreneurship, all of which are essential resources used in the production of goods and services. Which of the following is not a factor that affects productivity? Time is not considered a direct factor that affects productivity; productivity is mainly influenced by land, labor, capital, human capital, and entrepreneurship. Which of the following will be accomplished by efficient allocations of the factors of production? Efficient allocation of factors of production leads to maximum output and optimal use of resources. Which of the following is not a factor of production? Time is not a factor of production; the main factors are land, labor, capital, human capital, and entrepreneurship. Which of the following is an example of a land resource: cow, factory, employee, tractor? A cow is an example of a land resource because it is a natural resource. Which of the following is an example of a capital resource: coal, machinery, time, horse? Machinery is an example of a capital resource because it is a man-made tool used in production. Which of the following is an example of a land resource? A forest is an example of a land resource, as it is a natural resource used in production. What are the 4 factors of production and give an example of each? Land (forest), Labor (teacher), Capital (factory), Entrepreneurship (business owner). Which best describes a reason that consumer demand can change? Consumer demand can change due to shifts in income, preferences, or prices of related goods. Which of the following is an example of human capital? A worker's education and training are examples of human capital. Which of the following is an example of a labor resource? A factory worker is an example of a labor resource. Which of the following can be categorized as a primary activity? Farming is a primary activity because it involves the direct use of natural resources. Which of the following is an example of a factor of production? A tractor is an example of a factor of production (capital). What strategy focuses on a company deciding where to locate its operations? Location strategy focuses on where a company should place its operations to optimize resource use. Which of the following resources would be considered to be land by an economist? Water is considered land by an economist because it is a natural resource. Which are affected by the factors of production? Choose three answers. Output, productivity, and economic growth are affected by the factors of production. Which describes a factor that limits economic growth? Limited availability of resources such as land, labor, or capital can restrict economic growth. Which of the following is not considered an economic resource? Time is not considered an economic resource; land, labor, capital, and entrepreneurship are. What roles do entrepreneurs play in the economy? Entrepreneurs organize, manage, and innovate by combining other factors of production and taking risks. Which of the following is not a natural resource? a. time b. water c. land d. air Time is not a natural resource. Which of the following is not one of the categories of economic resources? Time is not a category of economic resources. What are the basic types of resources used by producers? Choose three answers. Land, labor, and capital are basic types of resources used by producers. What is a major disadvantage of organizing economic activity within firms? A major disadvantage is potential inefficiency due to bureaucracy and lack of flexibility. What are the three factors of production? Land, labor, and capital are the three main factors of production. Which of the following do economists consider to be capital? Machinery is considered capital by economists. Which of the following is not a reason to consider when selecting the location of your business? Personal preference is not an economic reason for business location selection. Which of the following is a capital resource? A factory is a capital resource. Which of the following statements regarding factor conditions in Porter's diamond framework is true? Factor conditions refer to the quality and quantity of resources like land, labor, and capital available in a country. In which market would a producer buy the equipment and technology needed to manufacture bicycles? A producer would buy equipment and technology in the factor market. In which of the following ways do capital goods differ from consumer goods? Capital goods are used to produce other goods, while consumer goods are used for personal consumption. Which of the following are general categories economists use to classify economic resources? Land, labor, capital, human capital, and entrepreneurship are general categories. As a factor of production, what does labor refer to? Labor refers to the physical and mental work contributed by people in the production process. Which of the following is the case where capacity is measured in terms of inputs? Input-based capacity measures how much can be produced given available resources. Which of the following statements is correct about the roles of economists? Economists classify resources into land, labor, capital, human capital, and entrepreneurship. Which of the following is a labor resource? A teacher is a labor resource. Which of the following changes would increase labor productivity? Increasing education and training would increase labor productivity. A firm’s decision to hire a factor of production does not depend on which of the following? A firm's decision does not depend on personal preferences unrelated to production. Which of the following are factors that increase the power of buyers? Availability of alternative suppliers and low switching costs increase buyer power. A sudden drop in the average consumer income would be an example of which environmental force? A sudden drop in income is an example of an economic force. What are examples of the factors of production that affect the output of a car repair shop? Land (garage space), labor (mechanics), capital (tools), human capital (training), entrepreneurship (owner).
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