Question 1

Roggenok, a textile company, owns 15 factories that produce clothing materials. The company has 1500 employees working in shifts. In this scenario, the factories owned by Roggenok can be classified as _____.

Accepted Answer

The factories are considered capital as they are man-made resources used in the production of goods.

Question 2

A college has contracted a construction company to build a bookstore for its new campus. In the context of factors of production, the heavy machinery and equipment used by the contractor in the construction process are referred to as _____.

Accepted Answer

In the context of factors of production, "capital" refers to the tools, machinery, and equipment used in the production of goods and services.

Question 3

Twilight Glitters sells ornate diamond jewelry. The company obtains diamond ore from the Yakutia region of Russia. In this scenario, the ore obtained by Twilight Glitters can be classified as _____.

Accepted Answer

The diamond ore obtained from the Yakutia region is a natural resource because it is a raw material that comes from nature and is not created by human effort.

Question 4

Gormath Inc., a shoe manufacturing company, employs 750 workers to create handcrafted shoes. In the context of factors of production, the employees of Gormath Inc. can be classified as _____.

Accepted Answer

The employees of Gormath Inc. are considered human resources as they provide the labor necessary for the production of handcrafted shoes.

Question 5

In the context of factors of production, the value of all natural resources tends to:

Accepted Answer

The value of natural resources typically rises when there is high demand and/or low supply, as scarcity or increased need drives up prices.

Question 6

In the context of factors of production, which of the following is an entrepreneurial "must"?

Accepted Answer

Protection from corruption is an entrepreneurial "must" because it creates a level playing field for businesses and encourages investment.

Question 7

A coal mining company has employed around 250 miners who work 8-hour shifts every day. In the context of factors of production, the miners can be classified as _____.

Accepted Answer

The miners are considered human resources as they represent the labor force employed by the company to perform the work of extracting coal.

Question 8

In the context of factors of production, which of the following statements is true of entrepreneurs?

Accepted Answer

Entrepreneurs thrive in environments that support economic freedom because such environments provide the flexibility and opportunities needed to innovate, take risks, and potentially earn profits.

Question 9

Niconti Inc. sells premium quality tea leaves. The company owns 400 acres of land on which it has established a large tea plantation with a tea processing factory. In this scenario, the land owned by Niconti Inc. can be classified as _____.

Accepted Answer

The land owned by Niconti Inc. is a natural resource because it is a part of the natural environment and not created by human effort.

Question 10

Susan, the Human Resources Director at Trangend Cosmetics, is responsible for recruiting, hiring, and training employees. In the context of the given scenario, Susan is a _____.

Accepted Answer

Susan, as the Human Resources Director, is considered a factor of production because she is involved in the recruitment, hiring, and training of employees, which are essential human resources functions contributing to the production process.

Question 11

In the context of factors of production, which of the following is most likely to result in a decrease in entrepreneurial activities?

Accepted Answer

High taxation can reduce the potential profits for entrepreneurs, making entrepreneurial activities less attractive and potentially leading to a decrease in such activities.

Question 12

Tornio, a steel company, imports iron ore from Marquette iron range in Michigan. In this scenario, the iron ore obtained by Tornio can be classified as _____.

Accepted Answer

Iron ore is a naturally occurring material that is extracted from the earth, making it a natural resource.

Question 13

Western Transit Bank has 150 automated teller machines (ATMs) across the country. Customers can use these machines to withdraw money, deposit money in their bank accounts, check their account balance, and transfer money to other accounts. These machines enable Western Transit Bank to carry out some of its operations smoothly. In the given scenario, the ATMs of Western Transit Bank can be classified as _____.

Accepted Answer

ATMs are considered capital because they are man-made resources used in the production of goods and services, facilitating banking operations.

Question 14

Children's Campground is a summer program for school children. It advertises that there is one counselor for every four children and that several other highly-trained professionals are part of its staff. Children's Campground advertisements indicate that the program relies heavily on its _____ factor to provide its services.

Accepted Answer

The program emphasizes the role of counselors and other professionals, highlighting the importance of human resources in providing its services.

Question 15

Richard is a technical analyst at a marketing firm. He is highly regarded by his peers and supervisors who always seek his advice while making important decisions for the company. In this scenario, Richard can be classified as a(n) _____.

Accepted Answer

Richard is considered a human resource because he is an individual whose skills and expertise are valuable to the company, contributing to its decision-making and operations.

Question 16

Unity Prax is a manufacturer of bronze sculptures. It obtains copper ore from the Pima County in Arizona. In this scenario, the copper ore obtained by Unity Prax can be classified as _____.

Accepted Answer

Copper ore is a natural resource as it is a raw material obtained from nature, specifically from the earth, without human intervention in its creation.

Question 17

In the context of factors of production, which of the following statements is true of natural resources?

Accepted Answer

Natural resources are materials or substances that occur in nature and can be used for economic gain. Their value tends to rise with high demand due to their limited availability and the cost associated with extraction and processing.

Question 18

In the context of factors of production, which of the following statements is true of capital?

Accepted Answer

Capital refers to the tools, machinery, and buildings used to produce goods and services, and it does not include money itself. Money is a medium of exchange, not a factor of production.

Question 19

In the context of factors of production, the synthetic resources that a business needs to produce goods or services are referred to as _____.

Accepted Answer

Capital refers to the synthetic resources, such as machinery, tools, and buildings, that businesses use to produce goods or services.

Question 20

High taxation, excess regulation, and limited choices in a business environment are likely to result in a(n):

Accepted Answer

High taxation, excess regulation, and limited choices can discourage entrepreneurial activities by increasing costs and reducing incentives for starting and running businesses.

Quiz 1: Business Now: Change Is the Only Constant