Factors of Production

Multiple Choice

Which of the following is the best example of an economic decision?

• Deciding which movie to watch with friends

• Choosing to open a new restaurant in town

• Practicing for a basketball game

• Studying for a history test

Fill in the Blanks

The effort that humans contribute to the production of goods and services is called

.

Land (Natural Resources)

Land is a “catch-all” term referring to the natural resources in an economy, such as water, minerals, and forests

Multiple Choice

What are examples of natural resources?

• water

• trees

• soil

• all of the above

Labor

the human effort, both physical and mental, that is contributed to the production of goods and services

Example: a waiter taking an order

Open Ended

Why do some workers make more money than others?

Capital

Items purchased for the production/provision of goods and services

Examples include tractors on a farm, desks in a school, and equipment in an office.

Multiple Choice

Capital refers to...

• The "gifts of nature" or natural resources not created by human effort.

• people with all their physical and mental efforts and abilities

• the tools, equipment, and factories used in production of goods and services

• individuals who start a new business or bring a product to market.

Open Ended

What would happen if a country had a shortage of entrepreneurs?

Categorize

Options (13)

coffee beans

water

espresso machine

coffee shop

Barista (coffee maker)

cashier

How to make coffee and other specialty drinks

Marketing

milk

sugar

Teamwork

Business Planning

Investment/Loan

Your starting a coffee shop, what will you need?

Land (Natural Resources)

Capital

Labor

Entrepreneurship