Factors of production, scarcity and the allocation of resources

Question 1

Factors of production

Answer 1

CELL
Capital
Entrepreneurship
Land
Labour

Question 2

What is capital and what is the incentive/reward

Answer 2

Goods which can be used in the production process - indirectly satisfied wants

interest from the investment

Question 3

What is entrepreneurship and what is the incentive/reward

Answer 3

Managerial ability. The entrepreneur is someone who takes risks, innovates and used the factors of production

profit incentive

Question 4

What is land and what is the incentive/reward

Answer 4

Natural resources such as oil, coal, wheat, water, space

Rent

Question 5

What is labour and what is the incentive/reward

Answer 5

Human capital, the workforce of the economy

Wages

Question 6

The environment is a _____ resource

Answer 6

scarce

Question 7

A renewable resource is one which

Answer 7

can be replenished so the stock level of the resources can be maintained over a period of time

Question 8

A non-renewable resource is one which

Answer 8

cannot be renewed so the stock level decreases over time as it is consumed

Question 9

What is the basic economic problem

Answer 9

Scarcity - wants are unlimited and resources finite causing an opportunity cost

Question 10

Define opportunity cost

Answer 10

the opportunity cost of a choice is the value of the next best alternative forgone