15 Questions
Which factor of production represents all human resources?
Labor
Who performs the two-fold function of combining factors of production and coordinating their activities?
Entrepreneur
Which term is used to refer to all man-made resources in production?
Capital
What is the term that sometimes separated from labor, land, and capital as a factor of production?
Enterprise
Which factor involves anticipation of demand and some uncertainty in decision-making?
Entrepreneur
Which type of costs can be directly traced to a specific activity, product, or process?
Direct costs
Opportunity costs represent the income from which of the following?
Next best alternative foregone
Which type of costs are important because they affect overall profitability despite being untraceable to a specific activity?
Indirect costs
Incremental costs are incurred when a business makes which of the following decisions?
Launching a new product
Which type of costs vary with changes in the activity or product?
Direct costs
What do opportunity costs calculate in terms of missed opportunities?
Income from the next best alternative foregone
Which type of costs include manufacturing costs relating to production?
Direct costs
If an entrepreneur decides to work for others instead of starting their own business, what type of cost is represented by the foregone salary?
Opportunity cost
What type of cost cannot be directly traced to a specific activity or component of the business?
Indirect cost
Which type of cost is incurred when upgrading machinery to increase output?
Incremental cost
Learn about the factors of production in economics such as land, labor, capital, and enterprise. Understand how these factors are essential in the production process and how they contribute to economic growth.
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