1 . Human capital is? The skill and knowledge of workers.

The resources that come from the land and sea

Machinery, buildings, and other man-made items.

Investment money.

2. Entrepreneurs do all the following EXCEPT?

Own all resources necessary to create a product or provide a service.

Organize labor, land, and capital.

Come up with new ideas about what and how to produce.

Take on risk from business decisions.

3. Which of the following is a factor of production?

The wages paid to workers.

The price of stock ownership in the company.

The dirt under the building where carpet is made.

The water used to cool the metal when molding it into pots.

4. Because we face scarcity, every choice involves?

An opportunity cost

Money

Giving up something for nothing.

The question “what”

5. The opportunity cost of any decision is?

The monetary cost but not the time

The value of the next best option

The time required but not the monetary cost

All the possible alternatives forgone.