The Nature of Production

Which of the following is not a factor of production?

• Engineering

• Land

• Labour

• Manufactured resources

Answer explanation

The factor of production that is missing is in Entrepreneurship. The entrepreneur is the person who combines all other factors of production to make a new product or service and bring to the market.

Engineering is concerned with the design, building, and use of engines, machines, and structures. An engineer may fall under Labour and engineering all under manufactured resources but it is not a factor of production

Which of the following is an example of a renewable resource?

• Natural gas

• Water

• Iron Ore

• Oil

A company that produces orange juice out of harvested oranges is in what production division?

• The extractive sector

• The manufacturing and construction sector

• The manufacturing sector

• The services is sector

Answer explanation

The creation of orange juice from oranges falls under the sector of construction and manufacturing, because in the construction process you are actually accumulating and preparing (removing its skin, cleaning) the oranges so that the company can manufacture orange juice.

Which of the following is a capital resource for a vendor who wishes to produce drinkable coconut water?

• The vendor’s ability to cut the coconut.

• The vendor’s ability to sell the coconut water to people.

• A credit loan needed from the bank to start the business.

• The vendor’s use of straw so that his/her customers can drink the coconut water.

Answer explanation

A capital factor of production is the additional resources that the business must use to produce their good or service.

The straw is a capital factor of production, because the business is producing drinkable, coconut water. To make the coconut water drinkable, the vendor wouldn’t need straws.

A farmer who produces tomatoes (🍅) to satisfy the demand of his consumers, who live in his village, suggest that the farmer produce on which level?

• Traditional Production

• Community Production

• Domestic Production

• Surplus Production

Answer explanation

Domestic production is producing within your country. Thus so long as it is in Belize it is domestic production, it can be within your village, district or other villages and districts of Belize.

Community production does not exist.

Traditional production means that you are only producing for yourself/family.

Surplus production means that you are producing for Belize and foreign countries.

———————— refers to the total amount of goods and services generated over a time, and———————-is the output per person per hour.

————————— is a persons ability to produce a good or service of demand, while ——————- is the effort of a person to produce a good or service.

As producers, we should desire —————— over ——————because it indicates that more of our produce will be sold.

A business that produces the transportation of bananas operates at the ————level of production.

A/an —————is when a business spends money to acquire capital.