#1
Which of the following is considered a factor of production in economics?
Labor
ExplanationLabor encompasses the physical and mental effort exerted by humans in the production process.
#2
What is the primary function of land as a factor of production?
Produce goods and services
ExplanationLand serves as a resource for producing goods and services.
#3
Which of the following is NOT a factor of production?
Technology
ExplanationTechnology facilitates production but is not considered a factor of production itself.
#4
Which factor of production involves the physical and mental effort exerted by humans in the production process?
Labor
ExplanationLabor involves the physical and mental effort exerted by humans in the production process.
#5
What does 'capital' represent in economics as a factor of production?
Buildings and machinery used in production
ExplanationCapital represents the physical assets such as buildings and machinery used in the production process.
#6
Which factor of production involves the human-made resources used in the production process?
Capital
ExplanationCapital involves human-made resources used in the production process.
#7
Which factor of production involves taking risks and combining other factors to produce goods and services?
Entrepreneurship
ExplanationEntrepreneurship involves taking risks and organizing other factors to produce goods and services.
#8
Which factor of production is most closely associated with innovation and creating new business ventures?
Entrepreneurship
ExplanationEntrepreneurship is closely associated with innovation and creating new business ventures.
#9
Which factor of production is responsible for converting raw materials into finished goods?
Labor
ExplanationLabor is responsible for converting raw materials into finished goods through physical and mental effort.