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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If output growth exceeds population growth for a country,
A. Average living standards will increase. B. This country must have overcome the problem of opportunity costs. C. Per capita GDP will decrease. D. GDP must have fallen at a very rapid rate.
What is the difference between average total cost and marginal cost and are they ever equal to each other?
What will be an ideal response?
Assume that you own a lake house. Unfortunately your job will require that you spend the summer on the road and you won't be able to enjoy it. You decide that you will rent it out for the summer while you are working
The mortgage payment on the lake house is $1000 per month and the upkeep and maintenance if it is occupied is $200 month but zero if it is not rented. What is the minimum rent that you would be willing to receive and why? What information is irrelevant in your decision? Explain.
Explain how an increase in the American demand for German goods leads to a change in the German Mark relative to the U.S. dollar