Part 1: Econ Review for Final Assessment

What are the four factors of production?

• Land, capital, labor, and entrepreneurship

• Money, time, effort, and resources

• Goods, services, capital, and labor

• Land, labor, goods, and services

Fill in the blank: Land is considered a natural resource or 'gifts of nature' not created by human effort; it is one of the four factors of ________.

• production

• consumption

• distribution

• exchange

Which of the following is an example of a capital good used in construction?

• Forest

• Bulldozer

• Field

• Mineral deposit

The definition of 'Division of Labor' is:

• The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.

• The process of dividing a market into distinct subsets of consumers with common needs or characteristics.

• The separation of ownership and control in a corporation.

• The allocation of resources in a way that maximizes social welfare.

Which of the following is an example of 'specialization'?

• A worker performing several different tasks in the same period of time.

• The assembly of a product broken down into separate tasks performed by different workers.

• A worker who performs a few tasks many times a day.

• A worker who performs tasks in different factories.

What is one of the four factors of production that involves people with all their abilities and efforts?

• Capital

• Labor

• Land

• Entrepreneurship

Which of the following is not included in the definition of Labor?

• Employees

• Entrepreneurs

• Managers

• Workers

Entrepreneurs are risk-taking individuals who introduce new products or services in search of ______.

• profits

• losses

• stability

• recognition

The Production Possibilities Curve represents:

• the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

• the minimum output level required to sustain an economy.

• the average production level of an economy over a period of time.

• the potential growth rate of an economy.

Opportunity cost is:

• The cost of an alternative that must be forgone to pursue a certain action

• The monetary cost of a product or service

• The time taken to complete a task

• The benefit received from a decision