Factors of Production Quiz

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

• Land

• Labor

• Wages

• Capital

Which factor of production includes human effort used in the production process?

• Land

• Labor

• Capital

• Entrepreneurship

An example of capital as a factor of production is:

• Raw land

• A tractor

• A factory worker

• A business owner

The person who takes the risk and combines resources to produce goods and services is called a(n):

• Manager

• Entrepreneur

• Banker

• Consumer

In which type of economy does the government have total control over resource allocation and production?

• Market economy

• Traditional economy

• Mixed economy

• Command economy

In a traditional economy, decisions are based on:

• Government planning

• Supply and demand

• Customs and beliefs

• Consumer choice

A real-world example of a command economy is:

• United States

• Japan

• North Korea

• Philippines

A real-world example of a traditional economy is:

• Modern urban society

• Rural tribes in Africa

• South Korea

• Brazil

The value of the next best alternative foregone when a decision is made is known as:

• Production cost

• Trade-off

• Opportunity cost

• Economic loss

You have ₱100 and choose to buy a book instead of a meal. The opportunity cost is:

• The book

• The meal

• The money

• Your time