Economics quiz chapter 21

what is a firm

• A firm is a type of company

• A firm is a business organization that produces goods or services with the hopes of making a profit

• A firm is a company main goal is to help people

what does production result in

is production and productivity the same

• yes

• no

John wants to start a farming company he will have to choose between labour and capital to run his company he lives in a country with a high population and the technology of the capital is not too good . which option is better?

• labour as the population is higher

• capital as capital is always better

what is production

• the process of taking multiple inputs and then using machinery and labour to produce one final output

• a manufacturing process which makes use of machinery

• it is how firms sell their product

capital intensive businesses tend to have lower average cost

• true

• false

what is not a problem with capital goods

• power consumption

• human error

• technical glitches

consumers lean towards products which are labour intesive as they are what

• handmade

• low quality

• cool