Factors of Production Quiz

Which of the following is NOT one of the four factors of production?

• Land

• Labour

• Capital

• Technology

Which factor of production involves the human effort used in the creation of goods and services?

• Land

• Labour

• Capital

• Entrepreneurship

Which factor of production refers to the natural resources used in the creation of goods and services?

• Land

• Labour

• Capital

• Entrepreneurship

Which factor of production involves the financial resources needed to produce goods and services?

• Land

• Labour

• Capital

• Entrepreneurship

Which factor of production involves the initiative to combine the other factors of production to create goods and services?

• Land

• Labour

• Capital

• Entrepreneurship

What are the three major flows in the economy?

• Production flow, Income flow, Spending (expenditure) flow

• Production flow, Savings flow, Investment flow

• Income flow, Savings flow, Spending (expenditure) flow

• Production flow, Investment flow, Spending (expenditure) flow

What does the production flow comprise?

• The distribution of goods and services by firms

• The production of goods and services by firms

• The consumption of goods and services by firms

• The marketing of goods and services by firms

What question is answered in the production flow?

• What to produce

• For whom to produce

• How to produce

• When to produce

What does the term "income flow" refer to?

• The flow of income to firms from households

• The flow of income to households from firms

• The flow of goods and services to households from firms

• The flow of goods and services to firms from households

What do households earn income from in the context of income flow?

• Selling goods and services

• Making the factors of production available

• Providing loans to firms

• Investing in stocks