SS7E3 Factors of Production

WHAT ARE THE 4 FACTORS OF PRODUCTION?

• Land, Capital, Need & Want

• Land, Labor, Capital, Entrepreneurs

• Water, Air, Food & Shelter

• Land, Capital, Good & Service

An individual's knowledge or skills that make production of a good/service more efficient

• Human Capital
• Physical Capital
• Investment Capital
• Enterprise Capital

Entrepreneurs develop new goods and services to start a business. Why is entrepreneurship often difficult?

• There is a risk that the new business may fail.

• There are laws that restrict most new businesses.

• Motivation for profit may not be the best incentive.

• Healthy competition encourages higher quality products.

What do these factors MOST LIKELY represent?

• skills of citizens
• health of citizens
• education of citizens
• values of citizens

• human capital

• capital

• natural resources

• entrepreneurs

Which of these would be the LEAST LIKELY to increase human capital?

• offering free training seminars for employees

• improving access to health care in rural areas

• increasing the cost of tuition at public colleges

• involving parents in their children’s education

Which statement BEST describes the relationship between these two factors of economic development in the Middle East?

• There is no relationship between literacy rate and average income.

• There is a direct relationship between literacy rate and average income.

• There is an inverse relationship between literacy rate and average income.

• There is a strong relationship between a low literacy rate and high income.

Why would the information on this chart be questioned for accuracy?

• The United States is not listed for comparison.

• India has a much more developed economy than the numbers indicate.

• North Korea's literacy rate is so high yet its GDP per capita is so low.

• Because of their Literacy rate, Hong Kong cannot have a higher GDP per Capita than Taiwan.

As one of the factors of production/productive resources, capital can be defined as

• the goods and services a business produces.

• the supply of labor needed to produce goods.

• the people that purchase goods and services.

• the equipment and factories needed to produce goods.

Gross Domestic Product
is a measure of the total value of all.....

• Consumer income in an economy over a period of time
• Capital accumulation in an economy over a period of time.
• Sales in an economy over a period of time.
• The goods and services produced in an economy over a period of time

A person who comes up with a product or service, and finds the money and time to produce this new product.

• Entrepreneur
• Incentive
• Specialization
• Barter