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Factors of production

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

What does the term 'factors of production' refer to according to economists?

a)

A) Economic resources

b)

B) Finished goods

c)

C) Money

d)

D) Air

2.

Fill in the blank: Factors of production, used correctly, bring about an economic ______.

a)

output

b)

decline

c)

disaster

d)

recession

3.

True or False: All necessary inputs are considered factors of production.

a)

True

b)

False

4.

According to the passage, why is air usually not considered a factor of production?

a)

It is not needed for production

b)

It is usually available in unlimited amounts and is free to use

c)

It is too expensive

d)

It is a finished product

5.

What is the cost of an economic resource? Fill in the blank: The cost of an economic resource is that when we are using it to produce something, we cannot use it to produce _________.

a)

something else

b)

more of the same thing

c)

at a lower cost

d)

faster than before

6.

According to the passage, what are the three main factors of production?

a)

Land, labor, and capital

b)

Money, machines, and management

c)

Water, air, and sunlight

d)

Technology, transport, and trade

7.

Which of the following best describes 'land' as a factor of production?

a)

A) Human effort

b)

B) Produced instruments of production

c)

C) Resources whose supply is low in relation to demand

d)

D) Payment for work

8.

Fill in the blank: The owners of land can receive income known as ________.

a)

economic rent

b)

wages

c)

interest

d)

profit

9.

What does the factor of labor refer to?

a)

Human effort

b)

Natural resources

c)

Machinery

d)

Capital investment

10.

What is the usual form of payment for the factor of labor?

a)

Wage or salary

b)

Rent

c)

Interest

d)

Profit

11.

What makes a strong economy according to economists?

a)

A strong economy is the same as strong output.

b)

A strong economy is determined by the number of banks.

c)

A strong economy is based on the amount of gold reserves.

d)

A strong economy is measured by the population size.