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1.2 The factors of production

Total questions: 40

Worksheet time: 24mins

Name
Class
Date
1.

What are the factors of production?

a)

land, capital, needs and wants

b)

land, labor, capital, and entreprise

c)

water, air, food, and shelter

d)

land, capital, goods and services

2.

What type of factor of production is a road?

a)

capital

b)

enterprise

c)

labour

d)

land

3.
What is meant by 'labour' in economics?
a)
Hard physical work used to produce manufactured goods 
b)
Human mental and physical effort used for producing goods and services
c)
Natural resources used in the productive process
d)
Risk taking and organising the factors of production
4.

Which factor of production is the most closely related to education?

a)

capital

b)

enterprise

c)

labour

d)

land

5.

Which factor of production is the least mobile?

a)

capital

b)

enterprise

c)

labour

d)

land

6.

Which are not a factors of production?

a)

land

b)

rent

c)

capital

d)

interest

7.

Which of the following would be an example of human capital?

a)

The amount of workers who work in a Nike factory

b)

The skills of the shoe designers at Nike

c)

Philip Knight, the CEO of Nike

d)

The land that the Nike headquarters is located on in Beaverton Oregon

8.

Land includes...

a)

the "gifts of nature" or natural resources not created by human effort.

b)

the tools, equipment, and factories used in production of goods and services

c)

people with all their efforts and abilities

d)

individuals who start a new business or bring a product to market.

9.

Capital refers to...

a)

the "gifts of nature" or natural resources not created by human effort.

b)

people with all their efforts and abilities

c)

the tools, equipment, and factories used in production of goods and services

d)

individuals who start a new business or bring a product to market.

10.

Labor refers to...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

the tools, equipment, and factories used in production of goods and services.

d)

The "gifts of nature" or natural resources not created by human effort.

11.

A herd of cows is an example of ...

a)

land

b)

labor

c)

enterprise

d)

capital

12.

Forests are examples of...

a)

land

b)

labor

c)

enterprise

d)

capital

13.

A bulldozer is an example of...

a)

land

b)

labor

c)

enterprise

d)

capital

14.

Your housekeeper is an example of...

a)

land

b)

labor

c)

enterprise

d)

capital

15.

A steel factory is an example of

a)

land

b)

labor

c)

enterprise

d)

capital

16.

Cashiers at McDonalds are examples of ….

a)

land

b)

labor

c)

enterprise

d)

capital

17.
What is this resource?
a)
human resource
b)
capital resource
c)
natural resource
d)
human and capital resource
18.
What resource is this?
a)
capital resource
b)
natural resource
c)
human resource
19.
What is this resource?
a)
natural resource
b)
capital resource
c)
human resource
20.
What is this resource?
a)
capital resource
b)
human resource
c)
natural resource
21.
What resource is this?
a)
natural resource
b)
human resource
c)
capital resource
22.

Milk is...

a)

a raw material

b)

an elaborated product

c)

none of them

23.

If land which is currenlty being used for farming may be used intead to build houses, that can be seen as

a)

occupationally mobile

b)

occupationally immobile

c)

geographically mobile

d)

geographically immobile

24.

A factory cannot be moved from London to New York, which could be understood as

a)

occupationally mobile

b)

occupationally immobile

c)

geographically mobile

d)

geographically immobile

25.

Which of the following may cause geographic immobility?

a)

Family ties and related commitments

b)

Lack of information

c)

Restrictions on the tranferring of manpower

d)

Lower price of housing in different ares or regions

e)

A better payment or job offer from an interntional company

26.

Which capital(s) can be seen as geographically immobile?

a)

A coal mine

b)

An airport

c)

A photocopier

d)

A dock

27.

Someone who is willing to bear risks and able to manage the factors of production in car manufacturing industry can also find another job in the banking industry.

a)

Occupationally mobile

b)

Occupationally immobile

c)

Geographically mobile

d)

Geographically immobile

28.

In which way, the quantity of land can increase?

a)

Soil erosion

b)

Flood

c)

Land reclamation

d)

Desertification

29.

Fertilisers can be applied to fields to increase the quantity of the land.

a)

True

b)

False

30.

The quantity of labor can be determined by

a)

the size of population

b)

the school leaving age

c)

the retirement age

d)

high payments

e)

the age structure of the population

31.

Capital goods will not decrease even though they can physicall wear out and some become outdated.

a)

True

b)

False

32.

Net investment can never higher than gross investment in the real world.

a)

True

b)

False

33.

Someone bought an incream machine to make strawberry sandaes; unluckily, some parts broke down for some reasons, and he was unwilling to repair it. Under such circumstance, it is said to be

a)

depreciation

b)

net investment

c)

negative net investment

d)

gross investment

34.

Advances in technology can improve capital goods to produce a higher output and a better quality output.

a)

True

b)

False

35.

In which way(s), the quantity of enterprise will increase?

a)

University offers more degrees in business and economics

b)

A reduction of government regulation

c)

High tax rate on firm's profit

d)

Friendly immigration policies

36.

The quality of enterprise could be improve through a better education system, and more experience.

a)

True

b)

False

37.

The reward for land is called (a)   .

38.

The reward for labor is called _______ and _______.

(a)  

39.

The reward for capital is called (a)   .

40.

The reward for enterprise is called (a)   .