Factors of Production Quiz

Factors of Production

• A service is an example of an intangible product that provides a benefit to the consumer, but does not have a physical presence.
• Natural resources are a factor of production that refers to the land, water, air, and other resources that are naturally available.
• Human effort used to produce goods and services is referred to as labor.
• A good is a tangible product that has a physical existence, such as a car or a book.

Factors of Production Explained

• Factors of production are the resources used to create goods and services.
• There are four main factors of production: natural resources, labor, capital, and entrepreneur.
• An example of a natural resource is water.
• Human resources is another term used for labor.