Economic Questions and Factors of Production

What are the three economic questions?

• What to produce? How to produce? For whom to produce?
• Who to produce? Why you produce? Like to produce?
• Why to produce? Tell who to produce? Things to produce?

Each society must determine how to best use its_______

• People
• Land
• Natural Resources
• All of the above

A garbage truck driver is an example of which Factor of Production?

• labor
• land
• entrepreneurship
• capital

The term "factors of production" means:

• things or skills needed to produce goods or services
• how we spend our money
• the resources of the government
• how society creates jobs

Iron, minerals, coal and plants are examples of which productive resource?

• land
• labor
• entrepreneurship
• capital

The term, "land" means:

• The natural resources used to produce goods or services.
• Work the people do to produce goods and services.
• Goods not created for their own use, but to make other goods/services.
• Person who organizes the factors of production to produce goods/services; business owners.

The term, "labor" means:

• Work the people do to produce goods and services.
• The natural resources used to produce goods or services.
• Person who organizes the factors of production to produce goods/services; business owners.
• Goods not created for their own use, but to make other goods/services.

Which is an example of investment in human capital?

• trucks
• factories
• education
• highways

Which activity is an example of investing in physical capital by a company?

• constructing a new factory
• throwing away old delivery trucks
• giving workers more time off to rest
• training workers to do their jobs better

What is an entrepreneur?

• A person who starts a new business.
• A leader of a country.
• A worker in a factory.
• A student in college.