The Four Factors of Production in Our Economy

The video explains the four factors of production: natural resources, labor, capital, and entrepreneurship. Natural resources are materials from nature, labor involves human work, capital includes money and tools, and entrepreneurship is about starting and improving businesses. Entrepreneurs combine these factors to produce goods and services that meet consumer needs.

Which of the following is NOT considered one of the four factors of production?

• Natural resources

• Labor

• Entrepreneurship

• Technology

What are natural resources in the context of production?

• Man-made tools and equipment

• Financial investments

• Naturally occurring materials like trees and oil

• The workforce involved in production

Which of the following best describes labor as a factor of production?

• The human effort used to produce goods and services

• The financial capital invested in a business

• The natural resources extracted from the earth

• The machinery used in factories

What is capital in the context of production?

• The natural resources used in production

• The human effort involved in production

• The financial and physical assets used to produce goods

• The entrepreneurial skills to start a business

Who is an entrepreneur in the production process?

• A person who invests capital in a business

• A person who supplies natural resources

• A person who combines resources to create goods and services

• A person who provides labor for production

How do entrepreneurs contribute to the production process?

• By performing manual labor

• By supplying financial capital

• By combining labor, capital, and natural resources

• By providing natural resources

Which factor of production involves starting or improving a business?

• Natural resources

• Labor

• Capital

• Entrepreneurship