3.1.1.2 Factors of production

• The factors of production are the resources used to produce goods and services
• Labor refers to the human effort, both physical and mental
• What is the role of entrepreneurship in production?

  Organizing other factors
• Match each factor of production with its definition:

  Land ↔️ Natural resources

  Labor ↔️ Human effort in production

  Capital ↔️ Manufactured goods for production

  Entrepreneurship ↔️ Risk-taking ability to organize factors
• Labor includes all the work done by employees, from manual tasks to intellectual activities
• Capital refers to manufactured goods used to produce other goods
• What does the land factor of production include?

  Natural resources
• Land provides essential elements for manufacturing goods and services.


  True
• Physical, mental, skilled, and unskilled are types of labor.
• Variable factors can be readily adjusted to meet changes in demand.


  True
• What are the four main factors of production?

  Land, labor, capital, entrepreneurship
• Match the factor of production with its definition:

  Land ↔️ Natural resources

  Labor ↔️ Human effort

  Capital ↔️ Manufactured goods

  Entrepreneurship ↔️ Organizing and innovating
• What are water resources needed for in production?

  Agriculture, industry, energy
• Agricultural land produces food crops.
• What is labor in the context of production?

  Human effort used
• Capital refers to manufactured goods used to produce other goods and services.


  True
• How does machinery contribute to production as a type of capital?

  Reduces labor costs
• Match the type of capital with its example:

  Machinery ↔️ Automated production lines

  Equipment ↔️ Tools, transportation vehicles

  Buildings ↔️ Factories, offices, warehouses

  Technology ↔️ Computer software, AI systems
• What is the primary role of capital in production?

  Enhance productivity
• How does a manufacturer improve productivity by investing in new machinery?

  Produces more with fewer workers
• What type of risks do entrepreneurs take in enterprise?

  Financial, time, effort
• Who founded Apple by combining all factors of production?

  Steve Jobs
• Fixed factors are easily changed in the short-term.

  False
• Factor allocation refers to how a business distributes its resources among the factors of production.
• Land includes agricultural land, mineral deposits, and raw materials.


  True
• Capital includes manufactured goods such as machinery and buildings.


  True
• Land refers to natural resources such as agricultural land and mineral deposits
• Land encompasses raw materials, agricultural land, and water resources.


  True
• What is labor in the context of factors of production?

  Human effort
• Entrepreneurship involves organizing other factors of production and bringing new ideas to the market.


  True
• Farmlands and mineral deposits are examples of the land factor of production.
• What is labor, according to the factors of production?

  Human effort
• Labor contributes directly to the volume and quality of production.


  True
• What are capital goods in the context of production?

  Manufactured goods
• Machinery, equipment, and buildings are examples of capital.
• Investing in capital leads to higher productivity and improved quality.

  True
• What is the role of enterprise in production?

  Organizing and managing factors
• Entrepreneurs coordinate and innovate the use of other factors of production.
• Steve Jobs combined all factors of production to found Apple.

  True
• What are fixed factors of production?

  Factors that cannot be easily changed in the short-term