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Factors of Production quiz #5

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  • Government investment in human capital is likely to shift:
    It is likely to shift the productivity and output of the economy upward.
  • The exchange of factors of production for income occurs in the ______ market.
    It occurs in the resource (factor) market.
  • A factor that is likely to affect the market price of a stock is:
    Economic conditions and resource availability can affect stock prices.
  • The power given to an individual producer is determined by:
    It is determined by control over resources and market share.
  • A corn farm, a coal mine, and a fishing company are all part of the _________ industry.
    They are part of the primary industry.
  • Economic factors in decision making fall under the category of:
    They fall under the category of resources or factors of production.
  • What is not a factor of production?
    Time is not a factor of production.
  • What is the result of an increase in input prices on production?
    It will increase production costs and reduce output.
  • What addresses the economic question of how to produce?
    The choice and combination of factors of production address how to produce.
  • What most likely promotes long-run economic growth?
    Investment in human capital and technology promotes long-run growth.
  • What are examples of resources for a firm?
    Land, labor, capital, and entrepreneurship are resources for a firm.
  • What is an example of capital?
    A factory is an example of capital.
  • What must a manager do in the production process?
    The manager must organize and allocate resources efficiently.
  • Why do business firms need financial capital?
    Firms need financial capital to invest in physical capital and expand production.
  • An improvement in production technology will:
    It will increase productivity and output.
  • Businesses that produce and sell tangible products such as steel and machines are part of the:
    They are part of the manufacturing sector.
  • Industrial machinery is an example of:
    Industrial machinery is an example of physical capital.
  • Another term for factors of production is:
    Another term is economic resources.
  • Simply put, ______ are the economic resources of a company. (enter only one word.)
    Resources
  • ______ are economic resources owned by a firm.
    Assets are economic resources owned by a firm.
  • List one factor that could cause demand to decrease for certain goods during a pandemic.
    Reduced consumer income could decrease demand.
  • Job specialization is known to:
    Job specialization increases efficiency and productivity.
  • The traditional view of the production process is that capital is subject to:
    Capital is subject to diminishing returns.
  • Variable inputs are defined as any resource that:
    Variable inputs can be changed in the short run to increase or decrease output.
  • Utilization is defined as the ratio of:
    Utilization is the ratio of actual output to potential output.
  • Educated people may generate ideas that increase production. These ideas:
    These ideas increase human capital and productivity.
  • An employee's initial wage rate is determined by:
    It is determined by their skills, education, and market demand.
  • ______ is the creation of finished goods and services using the factors of production.
    Production is the creation of finished goods and services.
  • An increase in input productivity will:
    It will increase output and reduce costs.