Factors of Production Review for Final Test Version #1

During a class discussion, Julia and Andrew were asked to identify a natural resource or "gift of nature". Which of the following did they choose?

• Machinery

• Computers

• Forests

• Buildings

Julia and Andrew are starting a small bakery. In the context of factors of production, what does capital refer to for their business?

• Natural resources

• Human effort

• Tools and equipment

• Population growth

Andrew and Julia are setting up a new office. Which of the following is NOT an example of capital?

• Machinery

• Water

• Computers

• Buildings

Harley and Amanda are discussing what influences the quantity of labor available in an economy. What factor do they identify?

• Natural resources

• Education levels

• Capital goods

• Mineral resources

What is the reward for entrepreneurs according to Melaina and JT's discussion?

• Fame

• Profit

• Recognition

• Experience

During a classroom discussion, Andrew and Melaina were asked to identify a resource that cannot be replenished once it is used up. Which of the following did they choose?

• Forests

• Water

• Oil

• Wind

During a class discussion, Andrew and Julia were talking about economic models. Andrew mentioned the term PPF. What does the abbreviation PPF stand for?

• Production Possibilities Function

• Production Possibilities Frontier

• Production Potential Framework

• Production Performance Factor

Amanda and JT are planning a community garden. They have limited space and resources. What does the Production Possibilities Curve (PPC) illustrate in this scenario?

• The maximum profit the garden can achieve

• All potential combinations of fruits and vegetables the garden can produce

• The total resources available for the garden

• The growth rate of the garden

JT and Melaina are deciding how to spend their Saturday afternoon. They can either go to the movies or visit a museum. What is the opportunity cost of choosing to go to the movies?

• The cost of buying movie tickets

• The cost of not visiting the museum

• The total cost of the day out

• The cost of staying at home

Harley and Amanda are planning a weekend trip. They have to choose between going to the beach or hiking in the mountains. What is the trade-off in their decision-making process?

• A decision to increase production

• Sacrificing alternatives when one choice is made

• Promoting consumer rights

• Reducing costs of goods