Econ 102 Quiz 5 UPDATED Actual Exam Questions and CORRECT Answers

Econ 102 Quiz 5 UPDATED Actual Exam
Questions and CORRECT Answers
3 main factors of production - CORRECT ANSWER✔✔- land, labor, capital



3 other factors of production - CORRECT ANSWER✔✔- time, entrepreneur, finance



why do entrepreneurs take risks - CORRECT ANSWER✔✔- because time is unknown



Why are entrepreneurs important? - CORRECT ANSWER✔✔- they bring all the capital,
land, and labor and they have to anticipate a demand for a good/service


Land is a metaphor for... - CORRECT ANSWER✔✔- all the natural resources (gifts of
nature)


Natural resources need to be transformed... - CORRECT ANSWER✔✔- in order to be usable



Homesteading principle - CORRECT ANSWER✔✔- if you find a piece of land that's unused
and unowned, you can make it yours by fencing it, bringing labor to it, and protecting it


Something has value if it is - CORRECT ANSWER✔✔- scarce
ex: air is limited so it's scarce


marginal analysis - CORRECT ANSWER✔✔- seeing if the benefits of an action overpower
the costs of that action


environmental decisions are made by - CORRECT ANSWER✔✔- market participants



labor represents... - CORRECT ANSWER✔✔- human effort