Factors of Production and Their Rewards

The video tutorial discusses the four factors of production: land, labor, capital, and entrepreneurship. Land is a natural resource with a fixed supply, rewarded by rent. Labor involves human efforts, both physical and mental, and is rewarded by wages. Capital refers to man-made resources used to generate wealth, with interest as its reward. Entrepreneurship involves risk-taking and decision-making, with profit or loss as its reward. The tutorial emphasizes understanding these factors and their respective rewards.

What are the four main factors of production?

• Land, machines, capital, and entrepreneur

• Land, labor, money, and entrepreneur

• Land, labor, capital, and technology

• Land, labor, capital, and entrepreneur

Which of the following is considered a 'free gift of nature'?

• Entrepreneur

• Land

• Capital

• Labor

What is the reward for land as a factor of production?

• Rent

• Wages

• Interest

• Profit

Which type of labor is characterized by its mobility and variability?

• Land

• Capital

• Entrepreneur

• Labor

What is the reward for labor in the production process?

• Rent

• Profit

• Interest

• Wages and salary

What is capital primarily used for in production?

• To generate more wealth

• To provide natural resources

• To offer human effort

• To take business risks

What is the reward for capital in the production process?

• Interest

• Rent

• Profit

• Wages

Who is responsible for making decisions and taking risks in a business?

• Entrepreneur

• Capital

• Land

• Labor

What is the potential reward for an entrepreneur?

• Wages

• Interest

• Profit or loss

• Rent

Which factor of production involves coordinating other resources to achieve business goals?

• Entrepreneur

• Land

• Labor

• Capital