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Factors of Production quiz #3

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  • Where do the resources come from to continue to expand the production of watermelons?
    Resources come from land, labor, capital, and entrepreneurship.
  • Which sector uses labor most efficiently?
    The manufacturing sector often uses labor most efficiently due to specialization.
  • Which term is generally associated with machines and other capital goods?
    Physical capital is associated with machines and other capital goods.
  • What is not one of the four broad categories of resources?
    Time is not one of the four broad categories; the categories are land, labor, capital, and entrepreneurship.
  • The people who perform jobs and tasks are part of which factor of production?
    They are part of the labor factor of production.
  • Why do you think business owners moved their mills to cities?
    Business owners moved mills to cities to access more labor and resources.
  • How does the control of resources vary between economic systems?
    In market economies, resources are privately controlled; in command economies, the government controls resources.
  • What is not one of the factors of production?
    Time is not a factor of production.
  • Labor in a factory is an example of which of these?
    Labor in a factory is an example of the labor factor of production.
  • The manufacturing of garden equipment is an example of which primary activity?
    It is an example of a capital-intensive activity.
  • What does production entail?
    Production entails combining land, labor, capital, and entrepreneurship to create goods and services.
  • Processing of computer information is an example of which sector of the economy?
    It is an example of the tertiary (service) sector.
  • Which statement demonstrates investing in physical capital to increase productivity?
    Purchasing new machinery to improve production efficiency is investing in physical capital.
  • Which of these is an example of a capital resource?
    A tractor is an example of a capital resource.
  • When tasks in an economy are specialized, what is the result?
    Specialization increases efficiency and productivity.
  • How could having more factories be an advantage during war time?
    More factories increase production capacity for war supplies.
  • What activity is not considered an input?
    Consuming a product is not considered an input.
  • What are the two economic factors that reflect a country's attractiveness as a market?
    Resource availability and labor productivity reflect market attractiveness.
  • What would cause a decrease in aggregate demand?
    A decrease in consumer income would cause aggregate demand to fall.
  • What are the factors of production?
    Land, labor, capital, human capital, and entrepreneurship.
  • Which most likely results from producers engaging in specialization?
    Specialization leads to increased efficiency and output.
  • What was one economic factor that helped support industrialization in England?
    Abundant natural resources (land) supported industrialization.
  • What measures the number of people a firm can communicate with all over the world?
    Communication infrastructure, part of physical capital, measures this.
  • What factor negatively affected open range cattle ranching?
    Limited land resources negatively affected open range cattle ranching.
  • Why are capital goods limited?
    Capital goods are limited by the availability of resources and investment.
  • Which factor determines who a society will produce goods and services for?
    The distribution of resources and income determines who receives goods and services.
  • What role do entrepreneurs play in the economic decisions a society makes?
    Entrepreneurs drive innovation and resource allocation in economic decisions.
  • Which term describes the appointment of a specific resource to a specific task?
    Allocation describes assigning resources to specific tasks.
  • Which of these is an example of an economic characteristic of land?
    Land is a limited and non-renewable resource.
  • What is an accurate statement about economic resources?
    Economic resources are limited and must be allocated efficiently.
  • Someone taking a course in web design is affecting what factor of production?
    They are increasing their human capital.
  • What business activity has the most long-term impact on production?
    Investing in education and training (human capital) has long-term impact.
  • What two requirements of supply must someone meet to be considered a producer?
    A producer must have the ability and willingness to supply goods or services.
  • What factor favors the development of primary economic activities?
    Abundant natural resources favor primary economic activities.
  • What factors affect employers’ decisions on how much to pay their workers?
    Worker productivity and market demand affect wage decisions.
  • What is true of resources in economics?
    Resources are limited and must be allocated efficiently.
  • What happened to businesses without capital?
    Businesses without capital cannot produce goods or services efficiently.
  • What do we mean by resources in economics?
    Resources are inputs like land, labor, capital, and entrepreneurship used in production.
  • What is a typical example of a production industry?
    Manufacturing is a typical example of a production industry.