Question 1

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

Accepted Answer

The four categories of factors of production are land (which includes natural resources), labor (the contribution of workers), capital (goods used in production, such as tools, buildings, and equipment), and entrepreneurship (the talent and effort of those who manage the other three factors). The other answer choices either omit important categories (such as natural resources) or include irrelevant factors (such as stocks and bonds) that are not factors of production.

Question 2

The concept of human capital describes

Accepted Answer

The concept of human capital refers to the skills, knowledge, and abilities possessed by individuals that contribute to their productivity and potential earning power in the workforce. Option A best describes this idea, as it emphasizes the quality of labor that individuals are able to provide due to their human capital.

Question 3

Capital,as a factor of production,refers to

Accepted Answer

Capital, as a factor of production, refers to the tools and instruments utilized by firms to produce goods and services. It includes machinery, buildings, equipment, and other physical goods that are used in the production process. Money, stocks, and bonds are financial assets that can be used to acquire capital but are not considered capital themselves. Production technology and production factors imported from abroad fall under other factors of production like entrepreneurship and labor, respectively.

Question 4

The total value of capital in the United States is around

Accepted Answer

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

Question 5

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 possess, which can increase over time as they work and gain more experience. As a result, the quantity of goods and services produced can increase since workers are more productive and efficient with improved human capital.

Question 6

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

The proportion of women taking paid jobs has seen a significant increase over the past 50 years, contributing to a larger quantity of labor in the United States. While population growth has also increased, it does not necessarily translate to an increase in the quantity of labor. The other choices are not supported by data and are therefore incorrect.

Question 7

Factors of production are the

Accepted Answer

Factors of production are the resources used in the production of goods and services. These resources include land/natural resources, labor, capital, and entrepreneurship.

Question 8

Which of the following is NOT directly related to human capital?

Accepted Answer

Human capital refers to the knowledge, skills, and expertise possessed by individuals that make them productive in the workforce. An MRI machine is a physical asset which is not related to human capital.

Question 9

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 they are physical tools or equipment used in the production of goods and services. Money, stocks, and bonds are financial assets that can be used to purchase capital or other factors of production, but they are not factors of production themselves. Education is considered human capital, but it is not a physical asset that is used directly in production.

Question 10

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

Accepted Answer

Land refers to the natural resources such as minerals, forests, water, etc. that are not created by humans.

Question 11

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

Accepted Answer

This answer is supported by data from the World Bank, which shows that the percentage of total employment in services has increased over time, while the percentage in agriculture has decreased.

Question 12

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 in a local machine shop is a physical tool that is used in the production process, making it an example of capital. Money, stocks, and bonds are financial assets and do not directly contribute to the production process.

Question 13

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 and can use to contribute to the production process. Therefore, it enhances the factor of production of labor, which is the physical and mental effort that people contribute to the production of goods and services. Human capital does not directly enhance the other factors of production, land and capital, as they are more focused on physical resources and assets.

Question 14

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

Accepted Answer

Energy and water are both natural resources, and therefore are classified as part of the land factor of production.

Question 15

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

Accepted Answer

The four factors of production are land (natural resources), labor (human resources), capital (physical capital), and entrepreneurship (innovation and organization). Money and equipment are forms of capital, and financial assets are a subset of capital that refer specifically to monetary resources. Therefore, A is the correct choice.

Question 16

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 hands-on experience and skills related to the investment industry, which increases her human capital. This improved human capital makes her a more desirable candidate for future employment opportunities.

Question 17

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" refers to the skills, knowledge, and experience possessed by individuals in a workforce. Therefore, a country with a large amount of human capital would have a highly skilled and educated labor force. This is the case in the United States, as it has a highly developed educational system and a workforce that is known for its expertise in many industries.

Question 18

As a factor of production,oil reserves are counted as

Accepted Answer

Oil reserves are a natural resource and therefore fall under the category of land as a factor of production.

Question 19

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

Accepted Answer

While money is necessary to facilitate economic transactions, it is not considered a factor of production. Factors of production are the resources needed to produce goods and services, such as land, labor, capital, and entrepreneurial ideas.

Question 20

Human capital can be increased through

Accepted Answer

Human capital refers to the knowledge, skills, and abilities that individuals possess and can contribute to the economy. Investment in education, on-the-job training, and work experience can increase the level of human capital of the population. This leads to increased productivity and economic growth in the long run. Investment in new technology and machinery can also lead to increased productivity, but without human capital, these resources can become obsolete or underutilized. Decreases in population would not necessarily increase human capital, and increasing production of consumption goods may not directly impact the development of human capital.

Quiz 2: The Usand Global Economies