Factors of Production and Economic Concepts

The video tutorial explains the four factors of production: land, labor, capital, and entrepreneurship. Land refers to natural resources, labor includes both physical and mental efforts, capital involves tools and machinery, and entrepreneurship is about organizing these factors to create value. The video also clarifies that money is not capital and provides an example of sugar production to illustrate these concepts.

What are the basic building blocks of an economy?

• Technological advancements

• Consumer demand

• Government policies

• Factors of production

Which of the following is considered 'Land' in the context of factors of production?

• Water resources

• Labor

• Machinery

• Money

What does 'Labor' as a factor of production include?

• Only mental labor

• Only physical labor

• Both physical and mental labor

• Neither physical nor mental labor

Which of the following is NOT an example of 'Capital'?

• Raw materials

• Buildings

• Water resources

• Machinery

What is the main difference between money and capital?

• Money is a factor of production, while capital is not

• Money is a medium of exchange, while capital is used to increase productivity

• Money is tangible, while capital is intangible

• Money is used for consumption, while capital is used for savings

Which of the following is an example of fixed capital?

• Raw materials

• Finished goods

• Machinery

• Labor

What does working capital include?

• Buildings and machinery

• Finished and semi-finished goods

• Natural resources

• Entrepreneurial skills

Which factor of production is responsible for combining all other factors to create economic value?

• Entrepreneurship

• Capital

• Labor

• Land

What is the primary reward for an entrepreneur?

• Salary

• Interest

• Rent

• Profit

Which factor of production involves taking risks to run a business?

• Labor

• Capital

• Land

• Entrepreneurship