Factors of Production and Scarcity

What is scarcity?

• A condition where resources are unlimited

• A condition where wants exceed available resources

• A situation where everyone gets what they want

• The price of goods and services

Which of the following is NOT one of the four factors of production?

• Land

• Labor

• Government

• Capital

Which of the following is an example of labor?

• A factory building

• A doctor performing surgery

• A delivery truck

• A gold mine

Which of these is an example of capital?

• A grocery store worker

• A field of wheat

• A cash register

• A business owner

Which of these best describes an entrepreneur?

• Someone who starts a business and takes risks

• A government worker

• A factory machine

• A type of land

Which of the following is an example of land as a factor of production?

• A software engineer

• A diamond mine

• A delivery truck

• A company CEO

Why do businesses have to make choices?

• Because resources are limited

• Because they don’t have enough customers

• Because they want to make losses

• Because they don’t understand economics

Which factor of production does a construction worker belong to?

• Land

• Capital

• Labor

• Entrepreneurship

If a good or service is scarce, consumers will usually be

• uninterested in owning it.

• able to get as much of it as they want.

• unwilling to buy it.

• willing to pay money to get it.

What role do entrepreneurs play in economics?

• Entrepreneurs tell consumers what they need and are required to buy.

• Entrepreneurs create the businesses that produce products that meet the wants and needs of consumers.

• Entrepreneurs borrow money from the economy to start their businesses.

• None of the above