SL8_T2_Factors of Production Quiz

What is the primary purpose of an economy's factors of production?

• To create utility for people
• To generate profit for businesses
• To increase government revenue
• To reduce unemployment

Which of the following is NOT considered a factor of production?

• Labor
• Capital
• Natural Resources
• Money

What is human capital?

• Natural resources available for production
• The skills and knowledge workers acquire
• The physical tools used in production
• The total number of workers in an economy

How can the amount of labor available to an economy be increased?

• By reducing the number of hours worked
• By increasing the number of people available to work
• By decreasing education opportunities
• By limiting job training programs

Which of the following is an example of capital?

• A tree in a forest
• A factory building
• A piece of land
• A government policy

What distinguishes natural resources from other types of resources?

• They are produced by humans
• They can be used for production
• They are found in nature
• They require technology to be useful

What role does technology play in production?

• It replaces human labor
• It increases the availability of natural resources
• It applies knowledge to improve production processes
• It eliminates the need for capital

What is the definition of an entrepreneur?

• A person who manages government resources
• A person who seeks to earn profits by organizing factors of production
• A person who provides labor for production
• A person who invests in financial capital

Which of the following is an example of financial capital?

• A factory
• A truck
• Stocks and bonds
• A computer

How can the supply of natural resources be expanded?

• By reducing the population
• By discovering new resources
• By increasing taxes on resources
• By limiting technology