Understanding Scarcity and Production

What are the four main factors of production in economics?

• A) Money, Stocks, Bonds, Mutual Funds

• B) Land, Labor, Capital, Entrepreneurship

• C) Demand, Supply, Price, Quantity

• D) Goods, Services, Wants, Needs

Which factor of production is best described as the natural resources used to produce goods and services?

• A) Labor

• B) Capital

• C) Land

• D) Technology

Human effort used in the production process is referred to as what?

• A) Capital

• B) Entrepreneurship

• C) Labor

• D) Land

What does the factor of production 'capital' NOT include?

• A) Machinery

• B) Tools

• C) Buildings

• D) Stocks and Bonds

Who takes the initiative in combining the factors of production to produce a good or service?

• A) Government

• B) Consumers

• C) Entrepreneurs

• D) Employees