7 Questions
Which of the following is an example of a service?
Haircut
Which factor of production refers to natural resources?
Land
What is the term for human effort used to produce goods and services?
Labour
Which of the following is an example of a good?
Furniture
What are factors of production?
Human, physical, and financial resources
What is an example of a natural resource?
Water
What is another term used for human resources?
Labour
Study Notes
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.
Test your knowledge on factors of production and understand their role in the production of goods and services. Learn about the different resources businesses need to effectively produce and deliver products to consumers.
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