Understanding the Factors of Production

Which of the following is considered a natural resource in the context of the factors of production?

• Land

• Machinery

• Labor

• Money

What is the primary role of labor in the production process?

• Providing financial capital

• Supplying raw materials

• Performing work to produce goods and services

• Creating new business ideas

Which of the following best describes capital as a factor of production?

• The land used for farming

• The workers in a factory

• The tools, machinery, and buildings used in production

• The owner of a business

Who is responsible for combining the other factors of production to create goods and services?

• Laborers

• Entrepreneurs

• Landowners

• Investors

Which of the following is an example of land as a factor of production?

• A factory building

• A river used for hydroelectric power

• A computer

• A delivery truck

A company invests in new machinery to increase its output. Which factor of production is being improved?

• Land

• Labor

• Capital

• Entrepreneurship

If a business hires more skilled workers to improve product quality, which factor of production is being enhanced?

• Land

• Labor

• Capital

• Entrepreneurship

Which scenario best illustrates the role of entrepreneurship in production?

• A farmer planting crops on a field

• An engineer designing a new machine

• An individual starting a company to develop a new product

• A worker assembling cars in a factory

A business owner decides to use a previously unused plot of land to build a solar farm. Which two factors of production are primarily involved in this decision?

• Land and Labor

• Land and Capital

• Labor and Entrepreneurship

• Capital and Entrepreneurship

Explain how the scarcity of land can impact the production of agricultural goods in a country.

• It increases the availability of raw materials.

• It limits the amount of goods that can be produced.

• It reduces the need for labor.

• It eliminates the need for capital investment.