Economic Resources and Capital Goods Quiz

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Which of the following is NOT considered a factor of production in classical economics?

Labor

Entrepreneurship (correct)

Land

Capital

Which factor of production refers to human effort provided in the creation of products and services?

Capital

Entrepreneurship

Labor (correct)

Land

What is considered an economic good?

Air from an air conditioner (correct)

Perfume

Sunlight

Fresh air

In economics, what do resources refer to?

Assets used to produce goods and services Signup and view all the answers

Which category of resources includes natural resources and raw materials?

Land Signup and view all the answers

What defines an economic good?

Goods that are useful but scarce Signup and view all the answers

What is a potential issue related to land as a factor of production?

Overcrowded spaces Signup and view all the answers

Which factor of production is affected by a mismatch of jobs?

Labor Signup and view all the answers

What could be a consequence of low quality equipment/machines as a factor of production?

Wastage of resources Signup and view all the answers

Which aspect is a characteristic of resources being partially replaceable in production?

Resources can be interchanged without affecting production Signup and view all the answers

What could be a challenge related to entrepreneurship in the production of goods and services?

Limited opportunity for growth Signup and view all the answers

In the context of production decisions, what does 'how to produce' primarily refer to?

Deciding on the methods and processes of production Signup and view all the answers

Which of the following is considered a natural resource?

Farmland Signup and view all the answers

What is the main characteristic of labor as a factor of production?

It involves mental and physical work done for income Signup and view all the answers

Which of the following best describes capital in the production process?

Manmade means of production like machinery and buildings Signup and view all the answers

What role does entrepreneurship play in the factors of production?

Develops an idea into a business Signup and view all the answers

Which term best defines the concept of resources scarcity?

Insufficient resources to supply all desires and needs Signup and view all the answers

Which of the following is an example of a capital good?

An industrial building Signup and view all the answers