01:220:103 Chapter Notes - Chapter 1: Full Employment, Fallacy, Price Mechanism

Which of the following are factors of production?

a. Water, earth, fire, air

b. Physical capital, human capital, natural capital

c. Knowledge, skills, talent

d. Land, labor, capital, entrepreneurship

e. Farmland, manual labor, financial capital

The production possibilities frontier model assumes all of the following except:

a. the economy produces only two products.

b. the level of technology is fixed and unchanged.

c. labor, capital, land, and natural resources are fixed in quantity.

d. production of goods requires full employment of all resources.