Factors of Production

What Factor of Production is a tractor?

• Resources

• Labor

• Capital

• Entrepreneurship

What is the alternative you face if you decide to do one thing rather than another called?

• Tradeoff

• Opportunity Cost

• Incentive

• Variable

What is the degree to which resources are being used efficiently to produce goods and services called?

• Specialization

• Productivity

• Division of Labor

• Consumption

What are the gifts of nature that make production possible?

• Consumer Goods

• Human Caital

• Natural Resources

• Hierarchies

Which would not be considered as capital by an economist?

• a share of corporate stock issued by General Motors

• an automobile used by General Electric

• a crane used by a building contractor

• a razor used by a barber

Which would NOT be classified by economists as land?

• Two thousand acres of untouched forest

• A hydroelectric dam

• Crude oil reserves

• Iron ore deposits

What is the term for the individual that brings together the other economic resources necessary for production?

• Government Units

• Entrepreneurs

• Corporate Shareholders

• Workers' Union

The fundamental economic problem is that resources are finite, but economic wants are insatiable. What terms best describes this problem?

• Trade-off

• Productivity

• Demand

• Scarcity

Which factor of production include any form of human effort exerted in production?

• Resources

• Labor

• Capital

• Entrepreneurship