Unit 8 - MicroEcon

What are the four factors of production?

• Labour, Capital, Land, Entrepreneurship

• Labour, Capital, Land, Technology

• Labour, Capital, Industry, Entrepreneurship

• Labour, Machinery, Land, Entrepreneurship

What is the price of labour services in a labour market known as?

• Wage rate

• Interest rate

• Rent rate

• Profit rate

What term is used to describe labour services that are traded day by day, such as picking fruit and vegetables?

• Contract labour

• Permanent labour

• Casual labour

• Skilled labour

How do most labour markets determine the wage rate and quantity of labour employed?

• Through government regulations

• Through a fixed pricing system

• Through supply and demand

• Through a central planning committee

What role does a labour union play in some labour markets?

• It operates like a monopoly on the demand side of the market.

• It operates like a monopoly on the supply side of the market.

• It determines the fixed wage rate for all workers.

• It provides training to all new employees.

What does capital consist of in the context of capital services?

• Stocks, bonds, and financial assets

• Tools, instruments, machines, and buildings

• Intellectual property and patents

• Human skills and expertise

What determines the price of the services of land?

• The market for capital goods

• The market for land services

• The market for nonrenewable natural resources

• The market for entrepreneurial services

What is a market for capital services also known as?

• Commodity market

• Rental market

• Capital goods market

• Entrepreneurial market

Which of the following is an example of a nonrenewable natural resource?

• Farmland

• Oil

• Trees

• Water

How are most capital services acquired by a firm?

• By trading in the market

• By renting from other companies

• By implicitly renting the capital to themselves

• By borrowing from financial institutions