Factors of Production in Economics: Definition, Importance & Examples


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What is the best explanation of factors of production?

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1. Which of the following is a factor of production that some economists believe should be included with the three basic factors?

2. Which of the following does not fall within the category of land as a factor of production?

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About This Quiz & Worksheet

The factors of production are the set of three basic resources used to produce goods or services in order to generate profits. This quiz/worksheet combo helps you understand these factors which are used for many different purposes such as evaluating the feasibility of an enterprise, assessing business operations and performance, and estimating potential profits.

Quiz & Worksheet Goals

In these assessments you'll be tested on:

  • The definition of factors of production
  • The fourth factor that economists are starting to consider
  • Examples of factors of production
  • The factor that includes business management
  • Examples of fixed capital

Skills Practiced

This quiz and worksheet lets students practice the following skills:

  • Information recall - access your knowledge on the economic factors of production
  • Reading comprehension - ensure that you draw from the lesson the most important information regarding fixed capital
  • Knowledge application - use your knowledge to answer questions about the types of resources that are considered factors of production

Additional Learning

To learn more, review the accompanying lesson called Factors of Production in Economics: Definition, Importance & Examples. This lesson covers the following objectives:

  • List the three basic factors of production
  • Explain the different types of capital
  • Understand the different elements that are included in the production factor of land
  • Explain what is included in labor as a factor of production