Factors of Production Quiz Review

A garbage truck driver is an example of which Factor of Production?

• labor
• land
• entrepreneurship
• capital

The following items (accountant's computer, carpenter's drill, and a tailor's sewing machine) are all examples of which factor of production?

• capital
• entrepreneurshipt
• land
• labor

The term "factors of production" means:

• things or skills needed to produce goods or services
• how we spend our money
• the resources of the government
• how society creates jobs

Iron, minerals, coal and plants are examples of which productive resource?

• land
• labor
• entrepreneurship
• capital

The term, "capital goods" means:

• Goods not created for their own use, but to make other goods/services.
• Work the people do to produce goods and services.
• Person who organizes the factors of production to produce goods/services; business owners.
• The natural resources used to produce goods or services.

The term, "entrepreneurship" means:

• Person who organizes the factors of production to produce goods/services; business owners.
• Goods not created for their own use, but to make other goods/services.
• Work the people do to produce goods and services.
• The natural resources used to produce goods or services.

The term, "land" means:

• The natural resources used to produce goods or services.
• Work the people do to produce goods and services.
• Goods not created for their own use, but to make other goods/services.
• Person who organizes the factors of production to produce goods/services; business owners.

The term, "labor" means:

• Work the people do to produce goods and services.
• The natural resources used to produce goods or services.
• Person who organizes the factors of production to produce goods/services; business owners.
• Goods not created for their own use, but to make other goods/services.

What is a risk an entrepreneur takes in running a business? 

• Losing the money invested in starting the business
• Going bankrupt [losing everything]
• Not having a steady job/paycheck
• All of these are risks!

Here are the monthly expenses for Company Z:
Labor  $30,000
Land   $40,000
Capital  $20,000
Entrepreneurship $10,000
How much does Company Z pay per month for these expenses all together?

• $100,000
• $90,000
• $30,000
• $1,000,000