Factors of Production and Rewards

The video tutorial covers the concept of production and its four key factors: land, labor, capital, and entrepreneurship. Each factor is explained in detail, highlighting its characteristics and role in the production process. The tutorial also outlines the objectives of the class, which include defining and listing the factors of production, and understanding their features. The session concludes with a summary and an assignment to reinforce learning.

What is the primary purpose of production as defined in the class?

• To create raw materials

• To satisfy human wants

• To increase labor force

• To reduce costs

Which of the following is NOT a feature of land as a factor of production?

• Land is a free gift of nature

• The value of land varies by location

• Land supply is unlimited

• Land is immobile

Which of the following is an example of labor?

• A forest

• A machine

• A business owner

• A teacher

What is the reward for labor in the production process?

• Interest

• Rent

• Profit

• Wages

Which of the following is a characteristic of capital?

• Capital is immobile

• Capital is a human factor

• Capital is a natural resource

• Capital is durable

What is the reward for capital in the production process?

• Profit

• Wages

• Rent

• Interest

Who is responsible for combining all factors of production?

• Entrepreneur

• Land

• Labor

• Capital

What is the primary reward for an entrepreneur?

• Profit

• Wages

• Interest

• Rent

Which factor of production is associated with taking risks and making decisions?

• Labor

• Entrepreneur

• Land

• Capital

Which of the following is NOT a factor of production?

• Labor

• Technology

• Land

• Capital