Briefly explain the factors of production and give an example of each
What will be an ideal response?
The resources, which are the inputs used in the production of the things that we want,used in production are called factors of production. There are five factors of production. Land encompasses all the nonhuman gifts of nature, including timber,water, fish, minerals, and the original fertility of land. It is often called the natural resource. Labor is the human resource, which includes productive contributions made by individuals who work, such as Web page designers, ballet dancers, and professional football players. Physical capital consists of the factories and equipment used in production. It also includes improvements to natural resources, such as irrigation ditches. Human capital is the economic characterization of the education and training of workers. An example is a worker's skills. Entrepreneurship is the component of human resources that performs the functions of organizing, managing, and assembling the other factors of production to create and operate business ventures.
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The labor supply curve represents: a. the relationship between the wage rate and labor productivity
b. the tradeoff between labor and leisure. c. the relationship between the wage rate and the quantity supplied of labor. d. the tradeoff between labor and capital as alternative factors of production.
To the economist, total cost includes:
A. explicit and implicit costs. B. neither implicit nor explicit costs. C. implicit, but not explicit, costs. D. explicit, but not implicit, costs.
The government may impose industrial safety regulations and occupational licensing requirements in which of the following economic systems?
A. Laissez-faire economy B. Pure capitalism C. Mixed market economy D. Macroeconomic system
In economics, international trade is based on the existence of
A. comparative advantage between countries. B. absolute advantage between countries. C. relative advantage between countries. D. output advantage between countries.