Factors of Production Quiz

What are the four factors of production?

• Land, labor, capital, and entrepreneurship

• Water, air, fire, and earth

• Money, technology, resources, and skills

• Education, experience, tools, and materials

Which factor of production refers to the physical and mental effort of people?

• land

• entrepreneurship

• labor

• capital

What is the term used for the natural resources that are used in the production process?

• elements of production

• components of production

• factors of production

• ingredients of production

Which factor of production includes the tools, machinery, and buildings used in the production process?

• Labor

• Capital

• Land

• Entrepreneurship

What is the term for the entrepreneur's ability to take risks and innovate in the production process?

• entrepreneurial spirit

• static production approach

• risk-averse mentality

• business as usual

Which factor of production refers to the money and resources necessary to start and maintain a business?

• capital

• labor

• land

• entrepreneurship

What is the term for the process of combining the factors of production to create goods and services?

• destruction

• elimination

• production

• reduction

Which factor of production is often considered the most important in modern economies?

• Entrepreneurship

• Labor

• Capital

• Land

What is the term for the income earned by the owners of land, labor, and capital?

• Profit income

• Factor income

• Sales income

• Service income

Which factor of production is often referred to as the 'forgotten factor'?

• Entrepreneurship

• Land

• Capital

• Labor