Question 1

The productive resource that organizes labor,land,and capital is

Accepted Answer

Entrepreneurship is the productive resource that organizes labor, land, and capital. It involves a person who identifies a need in the market and takes the risk to start a business to fill that need. Entrepreneurs bring together the other productive resources to create new goods and services, which leads to economic growth and development.

Question 2

The United States possesses a large amount of human capital.As a result of this fact,in the United States there is a

Accepted Answer

The term "human capital" specifically refers to the knowledge, skills, and abilities possessed by individuals in a workforce. Therefore, the correct answer is that the United States possesses a highly skilled and educated labor force.

Question 3

Economists classify energy and water as part of which factor of production?

Accepted Answer

Energy and water are natural resources that fall under the category of land as a factor of production.

Question 4

Which factor of production does human capital enhance?
i.land
ii.labor
iii.capital

Accepted Answer

Human capital refers to the skills, knowledge, and abilities that individuals possess which enhance their productivity and ability to contribute to the economy. This directly enhances the labor factor of production, making choice ii only (B) the correct answer.

Question 5

Capital,as a factor of production,refers to

Accepted Answer

Capital as a factor of production refers to the tools and instruments used to produce other goods and services. Money, stocks, and bonds (choice A) are financial assets, not physical tools used in production. Production technology (choice B) refers to the methods and processes used to transform inputs into outputs, but not the physical tools themselves. Production factors imported from abroad (choice D) may include capital goods, but this is not specific enough to be the correct answer. Stocks and bonds (choice E) are once again financial assets, not physical tools used in production.

Question 6

Capital is a factor of production.An example of capital as a factor of production is

Accepted Answer

Machines are an example of capital as a factor of production. This includes any tools, equipment, or technology used to produce goods and services. While money, stocks, and bonds are all financial assets, they are not directly used in the production process. Education can be considered a factor of production in some contexts, but it is not typically classified as capital.

Question 7

Capital is a factor of production.Which of the following is an example of capital?
i.$1,000 in money
ii.100 shares of Microsoft stock
iii.$10,000 in bonds issued by General Motors
iv.A drill press in your local machine shop

Accepted Answer

The drill press in the local machine shop is an example of capital, as it is a tool used in the production process. Money, stocks, and bonds are financial assets and not physical tools used in production.

Question 8

As a factor of production,oil reserves are counted as

Accepted Answer

Oil reserves are a natural resource that are found on or beneath the land. Therefore, they are categorized as a factor of production within the "land" category.

Question 9

The productive resource that includes all the "gifts of nature" is called

Accepted Answer

Land includes all the natural resources such as forests, minerals, water, and land itself.

Question 10

The total value of capital in the United States is around

Accepted Answer

The answer of The total value of capital in the...

Question 11

The concept of human capital describes

Accepted Answer

The concept of human capital refers to the skills, knowledge, and experience possessed by individuals that contribute to their productivity and earning capacity. It is a measure of the quality of labor, rather than the quantity of labor (which is measured by the size of the population, as in choice B). The other choices relate to physical capital and do not capture the key idea of human capital.

Question 12

Over time,the percentage of total employment in services has ________ and in agriculture,employment has ________.

Accepted Answer

The trend has been for a decrease in employment in agriculture and an increase in services over time. Therefore, the correct choice is E: increased; decreased.

Question 13

Payments to the factors of production are

Accepted Answer

Rent is the payment for land, wages are the payment for labor, interest is the payment for capital, and profit or loss is the payment for entrepreneurship. Therefore, choice C includes all the correct factors of production and their associated payments.

Question 14

Which of the following is NOT considered capital?

Accepted Answer

While stocks and bonds can provide financial benefits, they are not a physical or tangible asset that can be used for production or generating income. The other options listed are all examples of capital, which refers to goods that are used to produce other goods and services.

Question 15

Human capital can be increased through

Accepted Answer

Human capital refers to the knowledge, skills, and experience possessed by individuals in a workforce. This can be increased through investment in education, on-the-job training, and work experience, which allows individuals to develop and enhance their abilities. Investing in new technology and machinery may increase productivity, but it does not necessarily increase the human capital of the workforce. Decreases in population and increasing production of consumption goods have no direct impact on human capital.

Question 16

Human capital ________ as you work.As a result,the ___________ of goods and services ________.

Accepted Answer

Human capital refers to the skills, knowledge, and experience that individuals acquire through education, training, and work experience. As individuals gain more human capital through working, their productivity increases, which leads to an increase in the quantity of goods and services produced. Therefore, Option A is the correct answer as it states that the human capital increases as you work, resulting in an increase in the quantity of goods and services.

Question 17

Entrepreneurship,as a factor of production,refers to

Accepted Answer

Entrepreneurship refers to the human resource that organizes labor, land, and capital to produce goods or services. It involves taking risks and making decisions to create and run a successful business. This factor of production is distinct from labor, land, and capital, as it combines and organizes them to create something new and valuable. Therefore, choice D is the best answer as it clearly defines the role of entrepreneurship as a factor of production.

Question 18

Jan is attending college and studying to be an investment broker.To improve her chances of employment following college,she has interned at a top brokerage firm during the last two summers.Jan's internship has increased her

Accepted Answer

Jan's internship has provided her with practical experience and knowledge, which has improved her human capital. This includes her skills, knowledge, and abilities that can contribute to her productivity and potential success in her future career as an investment broker.

Question 19

One of the productive resources is capital.Capital includes

Accepted Answer

Capital refers to physical resources, such as tools, buildings, and machine tools, used to produce goods and services. Options A, B, and E do not specifically refer to physical resources, and option D includes consumer goods rather than production tools.

Question 20

Factors of production are the

Accepted Answer

Factors of production refer to the resources that are used in the production of goods and services, including land, labor, capital, and entrepreneurship. Therefore, option C is the correct choice as it specifically mentions productive resources used to produce goods and services. Option A and E are incorrect as they refer to the final output of the production process rather than the inputs. Option B and D are incorrect as they do not accurately describe the concept of factors of production.

Quiz 2: The Usand Global Economies