Factors of Production Study Guide

What are the factors of production and how do they help us satisfy our wants?

• Factors of production are resources used to produce goods and services, helping to satisfy wants by creating products.

• Factors of production are the laws governing economic activities, ensuring fair trade.

• Factors of production are the financial assets owned by individuals, used to purchase goods.

• Factors of production are the technological advancements that drive innovation in industries.

Assume you are a businessperson who makes and sells pencils. You need to calculate how much it costs you to make one pencil (cost of input/production). Which of the following lists every single material or resource you would need to make ONE pencil?

• Wood, Graphite, Paint, Metal Ferrule, Rubber Eraser

• Wood, Ink, Paint, Metal Ferrule, Rubber Eraser

• Plastic, Graphite, Paint, Metal Ferrule, Rubber Eraser

• Wood, Graphite, Paint, Plastic Ferrule, Rubber Eraser

What are examples of raw materials mentioned in the warm-up activity?

• Wood, brass, and graphite

• Plastic, steel, and rubber

• Cotton, silk, and wool

• Glass, sand, and clay

Which type of labor is included in the warm-up activity?

• Factory workers, lumberjack

• Office workers, teachers

• Doctors, nurses

• Artists, musicians

What type of equipment is mentioned in the warm-up activity?

• Factory equipment

• Sports equipment

• Musical equipment

• Kitchen equipment

What is one of the resources listed in the warm-up activity related to storage?

• Warehouse

• Cloud Storage

• Database

• Locker

Which resource in the warm-up activity is related to moving goods?

• Shipping & Transportation

• Agriculture & Farming

• Healthcare & Medicine

• Education & Learning

What team is mentioned in the warm-up activity that deals with promoting products?

• Marketing Team

• Sales Team

• Development Team

• Support Team

Who ensures that finances are on track according to the warm-up activity?

• Bookkeeper

• Accountant

• Financial Analyst

• Auditor

A good is a tangible item that can be bought or sold. What is a service?

• A tangible item that can be bought or sold

• An intangible activity or benefit provided for a fee

• A physical product that can be touched

• A type of currency used in trade