OBJECTIVE 2.7 - Factors of Production Interactive Reading

What is the term used by economists to mean economic resources?

• Factors of production

• Inputs of production

• Outputs of production

• Resources of production

What are the two types of resources mentioned in the text?

• Human and non-human

• Natural and artificial

• Physical and digital

• Renewable and non-renewable

What are factors of production needed for?

• To create an output of goods and services

• To increase the population

• To reduce pollution

• To improve education

What is an example of an input that is usually free and not considered a factor of production?

• Air

• Water

• Electricity

• Labor

When would air be considered a factor of production?

• When it has to be piped into a deep mine

• When it is used in agriculture

• When it is used in transportation

• When it is used in education

Image of workers assembling cars at Ford's plant in Chicago, Illinois, June 24, 2019.

• Image of workers assembling cars at Ford's plant in Chicago, Illinois, June 24, 2019.

• Image of workers assembling bicycles at Ford's plant in Chicago, Illinois, June 24, 2019.

• Image of workers assembling cars at Ford's plant in Detroit, Michigan, June 24, 2019.

• Image of workers assembling cars at Ford's plant in Chicago, Illinois, June 24, 2018.

What is the cost of using a farm's land to produce corn?

• The land can be used to produce wheat.

• The land cannot be used to produce wheat.

• The land can be used to produce both corn and wheat.

• The land cannot be used to produce anything.

What is considered a factor of production if it is scarce in relation to the need for it?

• Labor

• Capital

• Land

• Technology

What is economic rent?

• The income received from the ownership of labor.

• The income received from the ownership of capital.

• The income received from the ownership of land.

• The income received from the ownership of technology.

What does the factor of labor represent?

• All resources that are applied at the cost of human effort.

• All resources that are applied at the cost of machinery.

• All resources that are applied at the cost of land.

• All resources that are applied at the cost of capital.