Factors of Production

What are the three main factors of production?

• labor, technology, entrepreneurship

• skills, machinery, infrastructure

• money, resources, innovation

• land, labor, and capital

Which factor of production includes human resources and technology?

• capital

• entrepreneurship

• land

• labor

What is another term for natural resources in factors of production?

• capital

• land

• labor

• entrepreneurship

Which factor of production refers to financial resources?

• Capital

• Land

• Labor

• Entrepreneurship

Labor is considered as which factor of production?

• Natural resources

• Capital resources

• Financial resources

• Human resources

What is the role of capital in the factors of production?

• Capital is a natural resource used in the production process.

• Capital is a man-made resource used in the production process to enhance productivity and efficiency.

• Capital is a human resource involved in the production process.

• Capital is a financial resource used in the production process.

How do natural resources contribute to production?

• Natural resources provide the necessary inputs for production processes.

• Natural resources are only used for decoration in production

• Natural resources have no impact on production processes

• Natural resources hinder production by causing delays

Explain the importance of human resources in production.

• Human resources are essential for recruiting, training, and retaining skilled workers, which directly impacts productivity and overall success of the production process.

• Production can be successful without skilled workers

• Training workers is a waste of resources

• Human resources have no impact on production efficiency

How does technology impact the factors of production?

• Technology decreases efficiency and increases costs

• Technology impacts the factors of production by increasing efficiency, reducing costs, improving quality, and enabling new products and services to be created.

• Technology has no impact on the factors of production

• Technology limits the creation of new products and services

Why is it important to balance all factors of production in an economy?

• Imbalanced factors of production have no impact on economic growth

• Balancing factors of production ensures efficient allocation of resources, maximizes productivity, prevents shortages or surpluses, promotes economic growth, and maintains stability.

• Balancing factors of production leads to inefficiency and resource wastage

• Balancing factors of production only benefits a small portion of the population