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Factors of Production

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

What are the resources called that are needed to produce a good or service?

a)

Goods and services.

b)

Needs and wants.

c)

Factors of production.

d)

All of the above.

2.

How many factors of production are needed to produce a good or service?

a)

2

b)

3

c)

6

d)

8

3.

What are natural resources?

a)

Animals

b)

Things from nature (not man-made)

c)

Tree

d)

All of the above

4.

What is labor?

a)

Hard Work

b)

People who only do the physical work.

c)

People who do the work to produce something.

d)

None of the above.

5.

What could be an example of capital?

a)

Buildings

b)

Machines

c)

Money

d)

All of the above

6.

What is entrepreneurship?

a)

Shipping of products and services.

b)

Starting or improving a business.

c)

Improving needs and wants.

d)

All of the above.

7.

__________ It only takes one factor of production to make a good or service.

a)

True

b)

False

8.

__________ An example of a natural resource is a cell phone.

a)

True

b)

False

9.

__________ The entrepreneur combines natural resources, labor, and capital to produce a good or service.

a)

True

b)

False

10.

Which one of the three factors of production does the image show?

a)

Entrepreneur

b)

Capital

c)

Natural Resources or Land

d)

Labor

11.

Which one of the Three factors of production does the picture show?

a)

Natural Resources

b)

Labor

c)

Capital

d)

Land

12.

Which one of the three factors of production does the picture show?

a)

Labor

b)

Natural Resources

c)

Capital

d)

Land

13.

If a country is lacking water and arable land, this is a problem with

a)

Capital Goods

b)

Human Capital

c)

Natural Resources

d)

Entrepreneurship

14.

A herd of cattle is an example of ...

a)

Natural Resources

b)

Labor

c)

Entrepreneur

d)

Capital

15.

What are the resources called that are needed to produce a good or service?

a)

Goods and services.

b)

Needs and wants.

c)

Factors of production.

d)

All of the above.

16.

Entrepreneurs are...

a)

people with all their efforts and abilities

b)

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

c)

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

d)

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

17.

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.

18.

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.

19.
Forests are examples of...
a)
Land
b)
Labor
c)
Entrepreneurs
d)
Capital
20.
A herd of cattle is an example of ...
a)
Land
b)
Labor
c)
Entrepreneur
d)
Capital
21.

A product or service is scarce when

a)

The amount available is not enough to meet the demands of society

b)

The amount available can satisfy the demands of society

c)

Its price far exceeds the value of the item.

d)

One company is responsible for producing the product.

22.

Capital is a factor of production that refers to any human-made resource that is used to produce other goods and services.

a)

True

b)

False