Bell Ringer Quiz 1- Factors of Production

What are the three factors of production?

• Needs, wants, choices

• Workers, management, entrepreneurs

• Land, labor, capital

• Human capital, physical capital, intellectual capital

Why are entrepreneurs important to the economy?

• They have talent and imagination.

• They promote economic growth.

• They are willing to take risks.

• They desire profits.

A sales clerk represents which factor of production?

• Capital

• Labor

• Land

• Entrepreneur

Why is there scarcity even in an affluent country like the United States?

• Wants are limited but needs are unlimited.

• Some people are poor while others are wealthy.

• Resources are limited but wants are unlimited.

• Entrepreneurs are scarce and companies need leaders.

Which of the following is a benefit that a business is likely to attain from purchasing new equipment?

• Fewer natural resources required

• Increased productivity

• Lower costs

• Better entrepreneurial knowledge