Title: Factors of Production
Course: Demo 1

Q: The factors of production include which of the following?
- natural resources
- equipment
- entrepreneurship
A: natural resources; equipment; entrepreneurship

Q: Examples of natural resources include(s) ________.
- trees
- copper
- nuclear waste
A: trees; copper

Q: Natural resources have the following key characteristics:
- they are only found in remote locations in nature.
- they are made from natural ingredients and are sold to consumers.
- they are found in nature and can be used for the production of goods and services.
A: they are found in nature and can be used for the production of goods and services.

Q: Natural resources:
- are found in nature
- can be used for the production of goods and services
- are made from all natural ingredients)
A: are found in nature; can be used for the production of goods and services

Q: In business, the proper term for human effort that can be applied to production is:
- working hours.
- unions.
- labor.
A: labor.

Q: Resources that have been produced AND can be used to produce other good and services are:
- human resources.
- natural resources.
- capital.
A: capital.

Q: A widget manufacturer earns cash from the sale of its high quality widgets. The manufacturer then uses this cash to purchase equipment that will allow then to also manufacture gizmos. This is an example of which of the following factors of production?
- natural resources
- human resources
- capital
A: capital

Q: Both capital and natural resources can be used to produce other goods and services, but only capital resources:
- grow naturally.
- require bank financing.
- have been produced.
A: have been produced.

Q: A person who seeks to earn profits by finding new ways to organize factors of production is a(n):
- employee.
- manager.
- entrepreneur.
A: entrepreneur.