Econ- 2.1 Formative Assessment- Option 2

Another name for the Factors of Production is __________.

Which of the following is NOT a factor of production?

• Land

• Labor

• Money

• Entrepreneurship

Provide 1 example of a LAND resource NOT given in the video so far.

Consider the final service of a haircut. What is an example of a labor resource that would be used to produce this service?

Consider the final good of a video game. What is an example of the human capital resource that would be used to produce this good?

What is the role of human capital in the production process?

• It provides the raw materials for production.

•  It represents the physical tools and machinery used in production.

• It refers to the knowledge and skills of the workers.

• It brings together all the other factors of production.

What is physical capital in the context of production?

• The natural resources used in production.

• The knowledge and skills of the workers.

• The human-made tools and machinery used in production.

• The entrepreneurial spirit and initiative.

Consider the final good of a 3-pound bag of Zestar apples. What is an example of a physical capital resource that would be used to produce this good?

Consider the final service of a social media app. What is an example of entrepreneurship that would be key in producing this service?

Which of the following would be considered Entrepreneurship?

1. Seventh Generation, which sells eco-friendly cleaning and personal care products, was launched in 1988 in response to growing societal concerns about the environment.

2. An assembly line worker helping to build a new Tesla vehicle.

3. You launch a ride-share service, similar to Uber, in Chanhassen and the surrounding area.

4. A tractor used on a farm.

5. Starting a new computer repair business.

• 1 & 4

• 2 & 4

• 2, 3 & 5

• 1, 3 & 5