Factors of Production

What are the factors of production?

• Natural resources that are available for production

• Another term for resources in an economy

• What are required in the future to produce goods and services

• The human resources used in the production of goods and services

Which of these is an example of land as a factor of production?

• an airline pilot

• an airfield

• an aeroplane

• aircraft fuel

The factor of production capital means:

• What is combined with land and labour to produce goods and services

• the value of assets owned by a firm

• money needed to set up a firm

• money provided by shareholder to expand production in a firm

Which of these is the best explanation of how an economist dscribes an entrepreneur?

• someone who si lucky and makes a lot of mnoney

• someone who suceeds in some but not all business activity

• someone who is in charge of a firm

• someone who seeks out business opprotunities and is willing to take risks

Human capital is often referred to as a form of investment. Why is this?

• Labour is required to produce all goods and services

• Improved human capital can lead to increased economic growth

• Human capital is costly like any investment

• Top earners are able to invest some of their earnings

What is 'a produced means of further production'?

• capital

• enterprise

• labour

• land

Which factor of production is needed firts in order to set up a new business?

• capital

• enterprise

• labour

• land

Specialisation can only occur when :

• A price has been agreed to buy and sell a product

• A firm has modern methods of production

• A fim is more efficient than all others in making a prodcut

• An entrepreneur sees a business opportunity

Which reason is most likely to explain why an entrepreneur is prepared to take risks?

• to secure a large bank loan

• to realise a business ambition

• to justify giving up a safe job

• to icrease their self-esteem

Which action woul NOT raise the quality of the particular factor of production?

• capital - operating a machine continuously at full capacity

• enterprise - providing risk management advice

• land - increasing the use of fertilisers

• labour - makaing apprenticeships and training compulsary