18 Questions
Which of the following is NOT considered a factor of production in classical economics?
Entrepreneurship
Which factor of production refers to human effort provided in the creation of products and services?
Labor
What is considered an economic good?
Air from an air conditioner
In economics, what do resources refer to?
Assets used to produce goods and services
Which category of resources includes natural resources and raw materials?
Land
What defines an economic good?
Goods that are useful but scarce
What is a potential issue related to land as a factor of production?
Overcrowded spaces
Which factor of production is affected by a mismatch of jobs?
Labor
What could be a consequence of low quality equipment/machines as a factor of production?
Wastage of resources
Which aspect is a characteristic of resources being partially replaceable in production?
Resources can be interchanged without affecting production
What could be a challenge related to entrepreneurship in the production of goods and services?
Limited opportunity for growth
In the context of production decisions, what does 'how to produce' primarily refer to?
Deciding on the methods and processes of production
Which of the following is considered a natural resource?
Farmland
What is the main characteristic of labor as a factor of production?
It involves mental and physical work done for income
Which of the following best describes capital in the production process?
Manmade means of production like machinery and buildings
What role does entrepreneurship play in the factors of production?
Develops an idea into a business
Which term best defines the concept of resources scarcity?
Insufficient resources to supply all desires and needs
Which of the following is an example of a capital good?
An industrial building
Test your knowledge on economic resources like natural resources, labor, and capital goods. Understand the difference between natural resources and capital goods, as well as the role of labor and productivity in the economy.
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