SL3_Term 3_Factors of Production

What are the three main factors of production?

• Labor, Capital, Natural Resources
• Labor, Money, Technology
• Capital, Technology, Natural Resources
• Labor, Goods, Services

Which of the following best describes labor?

• Natural resources used in production
• Human effort applied to production
• Tools and machinery used in production
• Financial assets used to acquire resources

What is human capital?

• Natural resources available for production
• Money used to buy tools
• Skills and knowledge gained by workers
• Physical tools used in production

Which of the following is NOT considered capital?

• A factory building
• A computer program
• A piece of money
• A truck used for transportation

How can natural resources be expanded?

• By increasing the number of workers
• By discovering new uses for existing resources
• By creating more money
• By reducing the amount of capital

What role does technology play in production?

• It replaces all workers
• It is a type of natural resource
• It helps improve the efficiency of production
• It is not important in production

Who is an entrepreneur?

• A person who only invests money
• A person who organizes factors of production to earn profits
• A worker in a factory
• A government official

What is the relationship between entrepreneurs and technology?

• Entrepreneurs ignore technology
• Entrepreneurs create technology
• Entrepreneurs apply technology to improve production
• Technology is only used by workers

Which of the following is an example of capital?

• A tree in a forest
• A worker's skills
• A hammer used in construction
• A piece of land

What is utility in economic terms?

• The cost of production
• The satisfaction derived from goods and services
• The amount of labor used
• The total capital available