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Factors of Production quiz #4

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  • What are two factors that helped the cattle business to grow?
    Abundant land and increased demand helped the cattle business grow.
  • Which channel member makes the product?
    The producer or manufacturer makes the product.
  • Which is a man-made resource? a. land b. crude oil c. tools d. entrepreneurship e. biomass
    Tools are a man-made resource (capital).
  • What is the effect of an increase in the price of labor on the cost curves?
    An increase in labor price raises production costs and shifts cost curves upward.
  • What is the term for variables in an economy that cause a change in price or supply and demand?
    Determinants are variables that cause changes in price, supply, or demand.
  • Which situation best illustrates the concept of division of labor?
    Workers specializing in different tasks on an assembly line illustrate division of labor.
  • What is an economic characteristic of real property?
    Real property is a limited and valuable resource.
  • What is the most important factor that explains differences in living standards across countries?
    Differences in human capital and productivity explain living standard differences.
  • From the point of view of producers, what is the importance of factors of production?
    Producers rely on factors of production to create goods and services efficiently.
  • How can specialization lead to a division of labor for a business?
    Specialization allows workers to focus on specific tasks, increasing efficiency.
  • What is the term for unprocessed natural resources that are refined into end products?
    Raw materials are unprocessed natural resources.
  • The quantity of money supplied is:
    The quantity of money supplied is determined by central bank policy and market demand.
  • The decision-making unit of a purchasing organization is called its ________.
    The decision-making unit is called the buying center.
  • What are the two economic factors that reflect a country's attractiveness as a market?
    Resource availability and labor productivity reflect market attractiveness.
  • Who are the actors in a company's microenvironment?
    Suppliers, customers, and competitors are actors in a company's microenvironment.
  • A ______ can be defined as whatever people use to create services and goods.
    A resource can be defined as whatever people use to create services and goods.
  • Resources needed to provide goods or services are called?
    Resources needed are called factors of production.
  • Generally, _____________ you receive, the higher your lifetime earnings will be.
    Generally, the more education you receive, the higher your lifetime earnings will be.
  • If a specific economy has extra capital resources available, it will:
    It will be able to increase production and efficiency.
  • Improvements in the productivity of labor will tend to:
    Improvements in labor productivity will increase output and economic growth.
  • To generate higher profits, producers must work to:
    Producers must work to increase efficiency and reduce costs.
  • What are the 4 factors of production?
    Land, labor, capital, and entrepreneurship.
  • What are the four factors of production?
    Land, labor, capital, and entrepreneurship.
  • In order for the economy to be strong, individuals must _____.
    Individuals must be productive and efficiently use resources.
  • What are the 5 factors of production?
    Land, labor, physical capital, human capital, and entrepreneurship.
  • The people who work to produce goods and services are known as?
    They are known as labor.
  • Male drivers under 25 are charged for insurance at a higher rate because:
    They are statistically considered higher risk, affecting resource allocation in insurance.
  • What are the factors of production?
    Land, labor, capital, human capital, and entrepreneurship.
  • The work-related activities of a teacher and doctor fall under the resource category of?
    They fall under the labor resource category.
  • Suppliers are people or organizations that:
    Suppliers provide resources or inputs to producers.
  • What is the definition of capital in the context of the industrial revolution?
    Capital refers to machinery, factories, and equipment used to increase production.
  • Investment in physical capital is most likely to occur as a result of an increase in:
    Investment in physical capital increases with higher expected profits.
  • One consequence of automation is that producers need fewer:
    Producers need fewer labor resources due to automation.
  • The largest number of U.S. businesses employ:
    The largest number of U.S. businesses employ fewer than 20 workers.
  • Economic factors in decision making fall under the category of __________.
    They fall under the category of resources or factors of production.
  • Using raw materials to manufacture goods is an example of:
    It is an example of combining land and capital in production.
  • The labor force equals the:
    The labor force equals all people willing and able to work.
  • Each worker learns one task very well. What is this called?
    This is called labor specialization or division of labor.
  • Farms, mines, and lumber companies are examples of:
    They are examples of primary activities using land resources.