Question 1

Capital,as a factor of production,refers to

Accepted Answer

Capital refers to the tools and instruments used to produce other goods and services. It can include physical items such as machinery, equipment, and buildings. Money, stocks, and bonds may be used to acquire capital, but they are not capital themselves. The production technology used by firms and the production factors imported from abroad are not necessarily capital, although they may involve the use of capital.

Question 2

Human capital can be increased through

Accepted Answer

Human capital is the skills, knowledge, and experience of the workforce. It can be increased through investment in education, on-the-job training, and work experience. This can improve productivity and ultimately lead to economic growth. Investment in new technology or machinery may improve productivity, but only if workers are trained to use it effectively. Decreases in population or increasing the production of consumption goods do not directly impact human capital.

Question 3

Which of the following is not considered a factor of production?

Accepted Answer

Money is not a factor of production, but rather a medium of exchange used to purchase factors of production.

Question 4

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

A drill press is a physical capital used in the production processes, making it an example of capital. Money, stock, and bonds are financial assets and do not qualify as capital in the same sense as physical assets do.

Question 5

Which of the following is NOTdirectly related to human capital?

Accepted Answer

An MRI machine is not directly related to human capital as it refers to a physical asset or resource rather than a person's knowledge, skills, and abilities. A, B, C, and E all represent examples of investments in human capital.

Question 6

The concept of human capital describes

Accepted Answer

The concept of human capital refers to the skills and knowledge possessed by individuals that make them productive in economic activities. It focuses on the quality of labor and the investment in education, training, and health that people undertake to enhance their productivity. Therefore, option A, which refers to human skills, is the correct choice.

Question 7

Factors of production are the

Accepted Answer

Factors of production refer to the productive resources used to produce goods and services. These factors include land, labor, capital, and entrepreneurship.

Question 8

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

Human capital refers to the skills, knowledge, and experience possessed by a labor force. Therefore, the United States possessing a large amount of human capital indicates that there is a highly skilled and educated labor force in the country.

Question 9

As a factor of production,oil reserves are counted as

Accepted Answer

Oil reserves are natural resources found in land, hence they are counted as a factor of land in the production process.

Question 10

Which of the following correctly lists the categories of factors of production?

Accepted Answer

The traditional categories of factors of production are land, labor, capital, and entrepreneurship. None of the other answer choices accurately reflects these categories.

Question 11

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

Accepted Answer

Land refers to all natural resources including oil, coal, timber, land itself and minerals.

Question 12

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

Accepted Answer

Human capital refers to the knowledge, skills, and abilities that individuals possess, which enhance their productivity and contribute to economic growth. Therefore, human capital enhances the factor of production of labor, making choice ii the correct answer.

Question 13

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 because they are used to produce goods and services. Money, stocks, and bonds are financial assets and not directly used in production. Education is a form of human capital, which is a separate category of factors of production.

Question 14

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 skills that she can use in her future career as an investment broker. This increase in knowledge and ability is known as human capital.

Question 15

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

Accepted Answer

Human capital refers to the knowledge, skills, and experience that individuals possess and can contribute to the production of goods and services. As individuals work and gain more experience, their human capital increases, which leads to an increase in the quantity of goods and services produced, as well as an improvement in their quality. Therefore, option A is the correct answer.

Question 16

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

Accepted Answer

Energy and water are considered part of the "land" category in economics, which encompasses all natural resources used in production.

Question 17

Goods and services are produced by using four factors of production:

Accepted Answer

The four factors of production are land, labor, capital, and entrepreneurship. Land refers to all natural resources, labor refers to human effort in production, capital refers to man-made goods used in production, and entrepreneurship refers to the innovation and risk-taking necessary to bring the other factors together to create goods and services.

Question 18

Which of the following has been the bigger contributor to increases in the quantity of labor in the Unites States during the past 50 years?

Accepted Answer

While all of the options listed have likely contributed to increases in the quantity of labor in the United States to some degree, the trend of more women entering the labor force has had a significant impact over the past 50 years. This trend has led to a higher participation rate in the labor force overall, and has helped to offset some of the effects of declining participation rates among men and young adults.

Question 19

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

Accepted Answer

The trend over time has been towards the growth of the service sector and away from the agricultural sector. Therefore, the percentage of total employment in services has increased, while in agriculture it has decreased.

Question 20

The total value of capital in the United States is around

Accepted Answer

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

Quiz 2: The U.S.and Global Economies