Multiple Choice
Which of the following are general categories economists use to classify economic resources?
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0. Basic Principles of Economics
Factors of Production
Multiple Choice
Which factor of production typically provides the best opportunity for increases in productivity in a modern economy?
A
Labor
B
Capital
C
Entrepreneurship
D
Technology
Verified step by step guidance1
Understand the four main factors of production: labor, capital, entrepreneurship, and technology (often considered a component of capital or a separate factor).
Recall that labor refers to human effort, capital refers to physical assets like machinery, entrepreneurship involves organizing resources and taking risks, and technology refers to knowledge and methods that improve production.
Recognize that productivity increases when output per unit of input rises, which can happen through better skills (labor), more or better machines (capital), improved organization (entrepreneurship), or advancements in technology.
Analyze which factor most directly leads to sustained and significant productivity growth in a modern economy; technology often enables more efficient use of labor and capital, leading to higher productivity.
Conclude that technology typically provides the best opportunity for increases in productivity because it drives innovation and improvements across all other factors of production.
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