Which of the following items is not a factor of production?
A. An oil rig in the Gulf of Mexico
B. A ski jump in Utah
C. A bank loan to a farmer
D. An orange grove in Florida
C Answer C is not a factor of production because it is financial capital; see page 35.
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Jack F. Altrades's decision whether to purchase a good from a firm or hire resources directly in the market will
a. depend, in part, on his production skill but not on his contract negotiation skill b. depend, in part, on the opportunity cost of his time but not on his skill c. not depend on the cost of identifying, measuring, and pricing inputs d. not depend on the cost of negotiating contracts e. depend, in part, on both his skill and the opportunity cost of his time
Some sellers of used cars provide warranties to buyers, with the aim of reassuring buyers that the car is of good quality. These warranties help reduce the chance of what occurring?
A. Negative externalities. B. Adverse selection. C. Spillover benefits. D. Moral hazard.
Which of the following is NOT a function of the Fed?
A. acting as government's fiscal agent B. offering credit and loans to the U.S. public C. providing a system of check collection and clearing for depository institutions D. regulating the money supply in the economy
What's the most common way for a central bank to change the money supply?
A. Buying bonds from or selling bonds to the government B. Buying bonds from or selling bonds to the public C. Using open-market operations D. Changing tax collections