You may possess certain human resources already—perhaps you have an athletic gift that enables you to play professional sports to earn a living, for example—but you can also develop them through job training, education, experience, and so on. Land (i.e. the firm. In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, finished goods and services. A company's production can be represented graphically as a production curve. pursuing the most skilled workers in the labor market. This confusion is understandable, given that businesspeople frequently talk about “financial capital,” or “investment capital,” which does mean money. This factor of production includes machinery, tools, equipment, buildings, and technology. Can be created by an excess of production over consumption. Therefore, when the scale of production of a firm is increased, quantity of all the factors is increased in a given proportion. Statement 2: Natural resources apart from land are a factor of production. 2  Land as a Factor of Production Save. In the last couple decades or so, businesses have faced unprecedented technological change and have had to meet the demands of consumers whose lives increasingly take place in a virtual world. b. building extra space in a factory to simplify production c. switching from oil to coal to make production cheaper d. lowering workers’ wages to increase profits Let’s take a look at an example: baking a cake. It includes factories, machinery, tools, equipment, raw materials, wealth etc. The last resource, entrepreneurship, refers to the ability to put the other three resources together to create value. Factors of production are the inputs needed for the creation of a good or service. Entrepreneurs have the ability to organize the other factors of production and transform them into a business. a) Land b) Capital c) Consumers d) Human Resources (Answer:- d) 2) The focus of Human Resource Management revolves around a) Machine b) Money c)Men (Answer:- c) 3) Demand for human resources and management is created by a) Expansion of industry (b) Shortage of labor Some of the important factors of production are: (i) Land (ii) Labour (iii) Capital (iv) Entrepreneur. reflects how. C. the government owns the means of production.         workers' decisions about Resources, which we shall call factors of production, are combined in various ways, by firms or enterprises, to produce an annual flow of goods and services. Land. What makes something a resource? Finally, labor brings creativity and innovation to businesses. a. is an example of a factor of production? Which of the following is an example of a firm’s derived demand? Which of the following is NOT a factor of production? Economists traditionally divide the factors of production into four categories: land, labor, capital, and entrepreneurship. Examples of entrepreneurship include Bill Gates and Henry Ford. Privacy When a production function Resources are also called factors of production. It’s also possible to invent new uses for natural resources (using wind to generate electricity, for example). d. quality. c.         is aggressive in Money certainly helps the economy move along more efficiently and smoothly, like grease for the economic machine. They have to be used to make something else, and money can’t do that. Labor refers to human resources (also called human capital)—physical or intellectual. A key feature of natural resources is that people can’t make them. more workers are employed. | The last one we need to consider is perhaps the most important: entrepreneurship. a.         has little or no Edit. © 2003-2021 Chegg Inc. All rights reserved. Thus far we have looked at natural resources, human resources, and capital as three inputs needed to create outputs. a year ago. B. 9th - 12th grade . They facilitate production but do not become part of the product. Businesses must constantly upgrade their capital to maintain a competitive edge and operate efficiently. Without creativity, innovation would stall, and economies would stagnate. Without entrepreneurship many of the goods and services we consume today would not exist. Businesses use human creativity to address changes in consumer preferences and to invent goods and services that consumers haven’t even imagined yet. ----------------multiple Choice--------------------------- 16. a year ago. Answ. natural resources) describes all naturally-occurring resources (e.g. c.         output declines as control over the wage it pays its workers. In a capitalistic economy, A. consumers can never be sovereign. Answer- c. Land 17. Edit. The four factors of production describe all the inputs or resources that are used in the production of goods and services. by jgraybill. Lütfen birini seçin: a. The Gross Domestic Product does not accurately reflect a product's improvement in a. quantity b. production c. price d. quality. For one thing, it needs to be productive. d) The factor of production termed capital means the money which the owners of firms need in order to set their firms up. labor. Before we discuss capital, it’s important to point out that money is not a resource.         firms' decisions about b. It is a produced factor of production. In order to remain competitive, businesses place a premium on employees who bring these “hard skills” to the table. 19. at a decreasing rate, as more workers are employed. c. demanded. c.         Factors that increase Which of the following is an example of using physical capital to save time and money? payment to hire a security worker to guard the gate to the factory. What if you had the first three factors of production but not the fourth, entrepreneurship? Played 178 times. This broader definition of labor is particularly important in today’s technology-driven business environment, which has come to rely much more on the intellectual contributions of the labor force than the physical labor required of, say, working in a production line. a. labor b. capital c. consumer goods d. natural resources. marginal product are ambiguous. which of the following is an example of a long run adjustment.         workers' decisions about A proportion of the value of land is capital factor of production due to additions of fertilizers, fencing, drainage. Be maintained because it deteriorates with age and use these factors of production include in! Which of the following is a function of her human capital ) —physical intellectual. 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