Factors of production test.

What is the definition of fixed cost?

• Costs that do not change/Stays the same

• The money that businesses get from selling their products, once the money it costs to make these products has been taken away

• adding cost of producing one more unit of their product. Change in total cost/Change in quantity

• Costs that change and vary as the level of production output changes

______ is the money that businesses get from selling their products, once the money it costs to make these products has been taken away.

The goal of every business is to make as much profit as possible

• True

• False

What is variable cost?

• Costs that do not change/Stays the same.

• The goal of every business is to make as much profit as possible.

• Costs that change and vary as the level of production output changes.

• The money that businesses get from selling their products, once the money it costs to make these products has been taken away.

What are the factors of production?

• Land

• Labor

• Capital

•  Entrepreneurship

What does Land, Labor, Capital, Entrepreneurship all have in common?

• Their supply is limited

• Their supply is unlimited

What is land?

• Includes all the natural resources found on or under the ground that are used to produce goods and services.

• All the human time, effort, and talent that go into the making of products.

• All the resources made and used by people to produce and distribute goods and services.

_____ is all the human time, effort, and talent that go into the making of products.

_______ is all the resources made and used by people to produce and distribute goods and services.

What is the difference between capital and human capital?

• They are the same.

• One is the knowledge and skills gained through experience and one is all the resources made and used by people to produce and distribute goods and services.

• One is all the human time, effort, and talent that go into the making of products and one Includes all the natural resources.

• One is the combination of vision, skill, ingenuity, and willingness to take risks that is needed to create and run new businesses and one Includes all the natural resources.