Factors of Production and Economic Concepts Assessment

What is the primary factor of production that refers to all natural resources used in production?

• Capital

• Land

• Enterprise

• Labor

Which factor of production represents human effort, both physical and mental?

• Enterprise

• Capital

• Labor

• Land

In economics, what term describes the tools, machinery, and buildings used in production?

• Labor

• Enterprise

• Services

• Capital

Which of the following best describes "enterprise" as a factor of production?

• Physical resources from nature

• The organizational skill and risk-taking ability of entrepreneurs

• Manual work performed by humans

• Money invested in business

What distinguishes goods from services in economic terms?

• Services are always more expensive than goods

• Goods are intangible while services are tangible

• Goods are tangible products while services are intangible activities

• Services can be stored while goods cannot

Which of the following is NOT a characteristic of land as a factor of production?

• It includes natural resources

• It is human-made

• It is fixed in supply

• It includes minerals and water resources

Economic wants are:

• Limited to basic survival needs

• The same as economic needs

• Unlimited in nature

• Always satisfied with available resources

Which statement best describes economic needs?

• They are things required for survival

• They are luxury items

• They vary based on social status only

• They are unlimited like wants

How do entrepreneurs combine other factors of production?

• They only focus on land usage

• They coordinate all factors to create goods or services

• They exclusively manage labor

• They only provide capital

What is the main difference between needs and wants?

• Wants are always more expensive

• Needs are essential for survival while wants are desired but not essential

• Wants are always satisfied first

• Needs are unlimited while wants are limited