Factors of Production Quiz

The factors of production are the productive resources needed to produce ______.

• goods

• services

• capital

• labor

Aria is starting a new business. What are the four factors of production she needs to consider?

• land, capital, labor, and entrepreneurship

• capital, cash, labor, and profit

• labor, capital, trade-offs, and land

• entrepreneurship, land, opportunity cost, and capital

• land, labor, technology, and entrepreneurship

Land includes natural resources or “gifts of nature” that were not created by ______ effort.

• human

• animal

• mechanical

• artificial

Capital includes tools, ______, and factories used in the production of goods and services.

• equipment

• furniture

• vehicles

• clothing

In the video “Factors of Production” what were the two categories land resources divided into?

• Renewable and Non-renewable

• Natural and Artificial

• Physical and Human

• Primary and Secondary

Which of the following factors is dependent on the quantity of labor?

• Availability of skilled workers

• Amount of capital available

• Technological advancements

• Natural resources

In the video, “Factors of Production”, why do capital goods depreciate over time?

• due to wear and tear

• because of technological advancements

• inflation

• all of the above

What is the reward that entrepreneurs are after?

• Profit

• Salary

• Interest

• Rent

Labor refers to people with all their abilities and efforts, but does not include the ______.

• entrepreneur

• resources

• capital

• machinery

Entrepreneurs are the risk-taking individuals who introduce new products or services in search of _______.

• profits

• conservative

• stability

• followers