Factors of Production Review

What are the four factors of production?

• Land, labor, capital, and entrepreneurship

• Land, money, time, and labor

• Capital, goods, services, and land

• Labor, resources, capital, and technology

What is included in the factor of production known as land

• Human effort and skills

• Natural resources like water and oil

• Machines and tools

• Business ideas

What do we call the income earned by resource owners for using land?

• Wages
  

• Rent
  

• Interest
  

• Profit

What is the term for the effort that people contribute to the production of goods and services?

• Land
  

• Capital
  

• Labor
  

• Entrepreneurship

What is the payment to labor resources called?

• Rent
  

• Wages
  

• Profit
  

• Interest

Which of the following is an example of capital?

• A factory building
  

• A farmer
  

• A natural resource
  

• A business plan

Which of the following is NOT a factor of production?

• Land
  

• Labor
  

• Money

• Capital

What is described as limited quantities of resources to meet unlimited wants?

• Supply
  

• Scarcity
  

• Capital
  

• Demand

What do entrepreneurs combine to earn a profit?

• Money, labor, and land

• Land, labor, and capital
  

• Resources and goods
  

• Services and products

Why is money not considered a factor of production?

• Because it is not a renewable resource
  

• Because it cannot be used to buy resources
  

• Because it does not produce goods and services
  

• Because it is only used for trade