Understanding the Factors of Production

What are the four factors of production?

• Property, Employees, Investment, Creativity

• Resources, Workforce, Finance, Innovation

• Land, Labor, Money, Ideas

• Land, Labor, Capital, Entrepreneurship

Which factor of production includes natural resources?

• Labor

• Land

• Entrepreneurship

• Capital

What does the capital factor of production represent?

• Ideas for new products

• Natural resources

• Physical labor

• Money and tools

What is necessary for the entrepreneurship factor of production?

• A piece of land

• A large workforce

• Physical strength

• An innovative idea

Which factor of production is directly related to the workforce?

• Capital

• Land

• Labor

• Entrepreneurship

If a business purchases office supplies for day-to-day operations, which factor of production does this represent?

• Labor

• Capital

• Land

• Entrepreneurship

Starting a business based on a new idea pertains to which factor of production?

• Land

• Labor

• Entrepreneurship

• Capital

Water, iron, and coal are examples of which factor of production?

• Capital

• Land

• Entrepreneurship

• Labor

Which factor of production is utilized when a company decides to build a new factory?

• Entrepreneurship

• Capital

• Land

• Labor

Taking a risk to start a new business is associated with which factor of production?

• Entrepreneurship

• Capital

• Labor

• Land