What is the most important factor of production? Why? Entrepreneurship is most important because it directs, organizes, and plans the production process.
Q. What are the assumptions of economics?
Economic Assumptions People have rational preferences among outcomes that can be identified and associated with a value. Individuals maximize utility (as consumers) and firms maximize profit (as producers). People act independently on the basis of full and relevant information.
Table of Contents
- Q. What are the assumptions of economics?
- Q. What are the five factors of production quizlet?
- Q. What are the 4 factors of production and give me examples of each?
- Q. How is scarcity related to the four factors of production?
- Q. How do these factors affect your production?
- Q. What are factors of scarcity?
Q. What are the five factors of production quizlet?
Terms in this set (5)
- factors of production. Land, labor, and capital resources, and entrepreneur; the four basic resources that are combined to create useful goods and services.
- natural resources.
- labor resources.
- capital resources.
- entrepreneur.
Q. What are the 4 factors of production and give me examples of each?
The Four Factors of Production
| Land | Labor | Capital |
|---|---|---|
| The physical space and the natural resources in it (examples: water, timber, oil) | The people able to transform resources into goods or services available for purchase | A company’s physical equipment and the money it uses to buy resources |
Q. How is scarcity related to the four factors of production?
There are four factors of production (land, labor, capital and entrepreneurship). Land includes natural resources which are used in economy. Scarcity is based on factor on a facts that wants are unlimited and resources are limited.
Q. How do these factors affect your production?
Environmental influences – The climate, soil, water supply, human actions and other environmental factors can also affect productivity. Costs – A large part of the cost of establishment and maintenance of production is labour. The next major cost is inputs such as fertilisers and pesticides.
Q. What are factors of scarcity?
The resources that we value—time, money, labor, tools, land, and raw materials—exist in limited supply. There are simply never enough resources to meet all our needs and desires. This condition is known as scarcity.
