Practice Capital (2.4) - Factors of Production – Basic Concepts

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9 questions

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4 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is capital in the context of production?
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Think of examples like tools and machinery.
Question 2.
Name one type of fixed capital.
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Consider items that last a long time in production.
3Question 3.
What does capital refer to in economics?
- Natural resources
- Man-made resources
- Human labor
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Think about resources created by humans.
4Question 4.
True or False: Working capital is used in production and is typically lasting.
- True
- False
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Consider the lifespan of this type of capital.
Question 5.
If a business invests in more machinery (fixed capital), explain how this decision could impact operational costs in the long run.
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Consider the future savings against the upfront costs.
Question 6.
Analyze how the availability of working capital can affect a company's ability to meet customer demand during a peak season.
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Think about how inventory management is connected to working capital.

5 more questions in this section. Enroll free to practise them all.