Factors of production

What does the term 'factors of production' refer to according to economists?

• A) Economic resources

• B) Finished goods

• C) Money

• D) Air

Fill in the blank: Factors of production, used correctly, bring about an economic ______.

• output

• decline

• disaster

• recession

True or False: All necessary inputs are considered factors of production.

• True

• False

According to the passage, why is air usually not considered a factor of production?

• It is not needed for production

• It is usually available in unlimited amounts and is free to use

• It is too expensive

• It is a finished product

What is the cost of an economic resource? Fill in the blank: The cost of an economic resource is that when we are using it to produce something, we cannot use it to produce _________.

• something else

• more of the same thing

• at a lower cost

• faster than before

According to the passage, what are the three main factors of production?

• Land, labor, and capital

• Money, machines, and management

• Water, air, and sunlight

• Technology, transport, and trade

Which of the following best describes 'land' as a factor of production?

• A) Human effort

• B) Produced instruments of production

• C) Resources whose supply is low in relation to demand

• D) Payment for work

Fill in the blank: The owners of land can receive income known as ________.

• economic rent

• wages

• interest

• profit

What does the factor of labor refer to?

• Human effort

• Natural resources

• Machinery

• Capital investment

What is the usual form of payment for the factor of labor?

• Wage or salary

• Rent

• Interest

• Profit