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WorksheetsFactors of production and Opportunity Cost
Total questions: 50
Worksheet time: 25mins
What would an economist regard as an example of the factor of production capital?
An individual's purchase of stocks and shares
Borrowing by a firm to pay for electricity
The building by a firm of a new factory
The total savings by individuals in a country
In recent years more golf courses, which use large quantities of water, have opened in China. What may be the opportunity cost of this?
Cost of water
Loss of farmland
Sales of golf equipment
Wages of golf course staff
A student decided to buy a ticket for a concert instead of buying a new shirt. What is the opportunity cost of buying the ticket?
The concert
The price of the ticket to the concert
The shirt
The time spent purchasing the ticket
Which is not a factor of production?
A farm
A farmer
A farmer's bank account
A second-hand tractor
Heavy rain caused floods in an area of a country. What may be the opportunity cost of repairing the damage caused?
The allocation of government funds to the area instead of on a new airport
The cost of providing shelter for those made homeless
The decline in the tourist industry in the area
The loss of profits from businesses affected by the flood
The following are four ways factors of production are used. What is likely the require the greatest use of the factor enterprise?
A carpenter making wooden articles in his leisure time for sale at a monthly market
A corn farmer negotiating with other farmers to hire expensive machinery
A food shop owner sometimes selling flowers in the shop
A household harvesting vegetables grown at home
To help reduce the price of oil, new supplies are needed. However, in 2013, objectors opposed attempts to explore new sites because of the environmental damage the exploration might cause. How does this illustrate the basic economic problem?
Oil is a limited resource
Oil is expensive
The exploration involves demand and supply
There are external costs involved in production
A person makes sandwiches at home for 5 hours each day. She makes 20 sandwiches per hour, and sells each sandwich for $2 each. What is the opportunity cost is he takes a holiday on a working day?
$2
$40
20 sandwiches
100 sandwiches
A tractor factory runs out of important components and has to stop production. How does this illustrate the economic problem?
The factory lacks a competitive advantage.
The factory lacks economies of scale.
There are limited wants.
There is evidence of scare resources
What is the best example of the existence of the economic problem?
A government provides accommodation for all those who are homeless
A police force has a lengthening list of unsolved crimes
Janitha hands her homework in at the last permitted eadline
Musa completes his journey without putting petrol in his car
What best describes the problem of scarcity?
All consumer wants must be satisfied
All resources are free at the point of use
There are limited resources and unlimited wants
There are unlimited resources and limited wants
What is an example of the purchase of a capital good?
A farm owner pruchasing additional land
A farm owner purchasing a television
A farn owner purchasing a tractor
A farm worker pruchasing some seeds
Which statement about factors of production is correct?
The fruit picked from the tree is called land
The managers of a company are called enterprise
The money used to finance a project is called capital
The owner of a company is called labour
New oil reserves are discovered. What has increased in supply?
Capital
Enterprise
Labour
Land
Land includes...
The "gifts of nature" or natural resources not created by human effort.
the tools, equipment, and factories used in production of goods and services
people with all their efforts and abilities
individuals who start a new business or bring a product to market.
Capital refers to...
The "gifts of nature" or natural resources not created by human effort.
people with all their efforts and abilities
the tools, equipment, and factories used in production of goods and services
individuals who start a new business or bring a product to market.
Labor refers to...
people with all their efforts and abilities
individuals who start a new business or bring a product to market.
the tools, equipment, and factories used in production of goods and services.
The "gifts of nature" or natural resources not created by human effort.
Entrepreneurs are...
people with all their efforts and abilities
individuals who start a new business or bring a product to market.
The "gifts of nature" or natural resources not created by human effort.
the tools, equipment, and factories used in production of goods and services
Your garbage man is an example of...
Land
Labor
Entrepreneurs
Capital
A steel factory is an example of...
Land
Labor
Entrepreneurs
Capital
Bill Gates is an example of...
Land
Labor
An Entrepreneur
Capital
What are the four factors of production?
Land, Capital, Need & Want
Land, Labor, Capital, Entrepreneurs
Water, Air, Food & Shelter
Land, Capital, Good & Service
What is opportunity cost?
the value of the next best option that is not selected when a choice is made.
there is not enough of it.
things people make to earn money.
actions people do to earn money.
Michael has been invited by a friend to go fishing on Friday. His parents are going to a concert. Michael chooses to go fishing with his friend. What is his opportunity cost?
fishing with a friend
going to a concert
Ashton tried our for cheer leading and made the varsity team. She can choose to cheer for football or basketball. She chooses to cheer for football, what is her opportunity cost?
to cheer for football
to cheer for basketball
Jaleigh is going shopping with her Aunt and has $20. She wants to buy a pair of jeans and a shirt. The jeans are $15 and the shirt is $20. Jaleigh decides to buy the jeans, what is her opportunity cost?
jeans
shirt
The economic problem is that
resources are limited and wants are limited.
resources are unlimited and wants are limited.
resources are limited and wants are unlimited.
resources are unlimited and wants are unlimited.
The opportunity cost of a good is
its price in dollars and cents.
the alternative goods forgone.
the price of alternative goods foregone.
none of the other options
True/False: Human wants will always exceed available resources.
TRUE
FALSE
These are the things we desire to have.
Wants
Goals
Opportunity Costs
Because of scarcity, people are forced to make _________ about how to use resources.
Choices
Opportunities
Houses
Desires
Which one of the following is an opportunity cost?
You stay out late and your parents ground you.
You run a red light and you get a ticket.
You choose to give up math to study for history.
In a softball game, you miss the ball and strike out.
