Factors of Production and Oppotunity Cost

Which of the following is NOT a factor of production?

• Land

• Labor

• Capital

• Government

What is a key component of the factor 'Entrepreneurship'?

• Natural resources

• Risk and innovation

• Physical tools

• Worker wages

What economic issue is caused by allocating too many resources to the production of certain goods?

• Underproduction

• Overproduction

• Balanced production

• Scarcity

Which of the following is an example of 'Misallocation of Resources'?

• Investing in public healthcare

• Shifting funds from education to infrastructure

• Building luxury hotels instead of roads

• Hiring fewer teachers

Opportunity cost is the result of which fundamental economic problem?

• Scarcity

• Abundance

• Inflation

• Unemployment

If a government decides to reduce spending on building new highways to invest more in renewable energy projects, this is an example of:

• Misallocation of resources

• Reallocation of resources

• Overallocation of resources

• Resource destruction

Which scenario best represents a trade-off in resource allocation?

• A company hires workers while purchasing more machines

• A country reduces healthcare funding to improve military technology

• A restaurant overstaffs for the summer season

• A factory produces both luxury goods and essentials equally

What type of capital includes machines, tools, and factories used in production?

• Financial capital

• Human capital

• Physical capital

• Natural capital

Which of the following is an example of labor as a factor of production?

• Factory machinery

• Construction workers

• Forests and rivers

• Managerial decisions

When an insufficient amount of resources is allocated to essential goods and services, leading to shortages, this is known as:

• Reallocation of resources

• Misallocation of resources

• Overallocation of resources

• Underallocation of resources