Multiple Choice
Which of the following best describes how Graeter’s owners have used the four factors of production to build their business over time?
68
views
0. Basic Principles of Economics
Factors of Production
Multiple Choice
Which of the following was an economic factor that helped support industrialization in England?
A
Abundant supply of capital for investment in new technologies
B
Lack of access to international trade markets
C
Scarcity of natural resources such as coal and iron
D
Strict government regulations limiting entrepreneurship
Verified step by step guidance1
Step 1: Understand the context of industrialization in England, which refers to the period when England transitioned from agrarian economies to industrial manufacturing, driven by technological innovation and capital investment.
Step 2: Identify key economic factors that typically support industrialization, such as availability of capital, access to natural resources, open trade markets, and government policies that encourage entrepreneurship.
Step 3: Analyze each option in the problem: 'Abundant supply of capital for investment in new technologies' supports industrialization because capital is needed to fund machinery and factories.
Step 4: Recognize that 'Lack of access to international trade markets' would hinder industrialization, as trade allows for resource acquisition and market expansion.
Step 5: Note that 'Scarcity of natural resources such as coal and iron' would be a barrier, since these resources are essential inputs for industrial production, and 'Strict government regulations limiting entrepreneurship' would also restrict industrial growth by discouraging innovation and business formation.
Related Videos
Related Practice
