Briefly explain the factors of production and give an example of each.
What will be an ideal response?
The factors of production are resources used as inputs in the production of the things we want. 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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A capital ________ can promote financial instability in an emerging-market country because it is what forces a country to ________ its currency
A) inflow; devalue B) inflow; revalue C) outflow; devalue D) outflow; revalue
By the time Paul Volcker took office as the new Federal Reserve chairman in 1979, the inflation rate exceeded 10%. By the end of 1986 the inflation rate had been brought down to 1.9%. Which of the following is true about the Volcker Disinflation?
A) lower inflation resulted from a tightening of monetary policy B) by raising the federal funds rate to over 20%, the Federal Reserve stimulated the economy resulting in lower levels of both inflation and the unemployment rate by the early 1980s C) the unemployment rate was brought down by 1982 but it took longer to reach lower inflation rates D) all of the above E) none of the above
At many municipal golf courses, local residents pay a lower fee to play than other golfers do. One necessary condition for the golf course to be able to successfully price discriminate according to residency is that
A) they can check the identification cards of golfers. B) local resident golfers and other golfers have the same price elasticity of demand to play at the municipal course. C) there are many golf courses nearby from which golfers can choose. D) they require all golfers to rent a cart.
Competition for votes between two political parties will cause those parties to
A) produce quite different policy proposals. B) have very similar policy proposals. C) find ways to clearly distinguish themselves in order to give voters a clear choice. D) a and c E) none of the above