which factors are considered when deciding how to make goods and services? choose three answers.

which factors are considered when deciding how to make goods and services? choose three answers.

which factors are considered when deciding how to make goods and services? choose three answers.
which factors are considered when deciding how to make goods and services? choose three answers.

 

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which factors are considered when deciding how to make goods and services? choose three answers.

When selecting how to develop products and services, some of the factors that are taken into consideration include :
the finances of potential purchasers.
ways to produce things at a reduced cost or with a higher quality.
ways to generate the most profit possible.

Components of the Production Process

The decisions that an economy makes about the kind of products and services it will create are ultimately decisions regarding how it will employ its means of production, or the resources it has at its disposal for the creation of goods and services.

The term “utility” refers to the value, or sense of enjoyment, that individuals obtain from the products and services they purchase as well as the activities they participate in. Therefore, in the end, the factors of production in an economy are what produce utility; they are what serve the interests of people.

Labor, capital, and natural resources are the three components that make up an economy’s pool of available “factors of production.” The creation of products and services requires a certain amount of human effort, which may be referred to as labor. The labor that is available to the economy is comprised of both already employed individuals and those who are looking for work.

The generation of capital results in the creation of a factor of production that can then be used in the production of additional commodities and services. The term “capital” may refer to a variety of things, including office buildings, equipment, and tools. Natural resources are the resources of nature that may be exploited in the creation of products and services. Natural resources include things like minerals, water, and air.

In the following three parts, we are going to take a more in-depth look at the variables of production that are used in the creation of the products and services that are utilized by us. Although labor, money, and natural resources may each play a unique role in the creation of a wide variety of products and services, these three fundamental building blocks continue to constitute the engine that drives the manufacturing process.

After that, we shall investigate the parts that were played by technology and businesspeople in the process of putting these elements of production to use. When economists first started to wrestle with the issues of scarcity, choice, and opportunity cost two centuries ago, they concentrated on these notions. This is likely to continue to be the case when they wrestle with these issues two centuries from now.

Labor

Work is the application of human effort toward the making of anything. The labor force includes, among other things, individuals whose jobs include flying aircraft, instructing children, repairing tires, and enforcing laws. People who would want to work but have not been able to find employment are regarded part of the labor force accessible to the economy even if they are classified as jobless.

It is helpful to make a distinction between the two types of work used in certain settings. The first is anything that may be compared to a natural resource but is provided by humans. It refers to the inherent skill that a person who has not received any education or training in a specific industrial process has.

But the majority of employees bring in far more. Human capital refers to a person’s knowledge and abilities that may be put to use in the production process. These abilities can be acquired via education, training, or experience. Students who are enrolled in four-year programs at colleges and universities are building their human capital.

Workers who advance their careers by obtaining expertise via either experience or formal education are building up their human capital. Reading is an important part of a child’s development and the acquisition of human capital.

There are two avenues that may be pursued in order to expand an economy’s pool of accessible workers. One solution is to raise the overall amount of labor, which may be accomplished in one of two ways: either by expanding the number of individuals who are willing to work or by raising the typical number of hours worked each week. The second strategy is to boost the level of human capital already held by the workforce.

Capital

In the distant past, when people first began to roam the planet, they obtained their sustenance by stripping the leaves or fruit off a plant, or by capturing an animal and consuming it. However, we do know that very early on in their history, they started fashioning tools out of stones, most likely for use in the process of slaughtering animals.

Because they were made to be used in the manufacturing of other things, such as food and clothes, these instruments are considered to be the earliest forms of capital.

Saws, meat cleavers, hooks, and grinders are some of the modern counterparts of the original stone tools. All of these instruments are employed in the process of slaughtering animals. In addition, the value of capital includes tools such as hammers, screwdrivers, and wrenches.

Capital includes vehicles and their associated equipment, such as automobiles and trucks. Infrastructures including roads, bridges, ports, and airports count as capital investments. Buildings are often considered capital since they assist in the production of commodities and services.

The term “capital” refers to more than just the things that can be touched and seen. A new symphony’s score is an important investment since it will be utilized to stage performances of the piece. Capital consists of computer software that is used by corporations or government organizations in order to generate products and services. Therefore, capital may be comprised of both material products and intellectual discoveries. Any resource may be considered capital if it meets both of the following criteria:

It is necessary that the resource has been generated.
The resource has the potential to be used in the production of more commodities and services.
Money is an example of anything that is not considered capital. Because money cannot be used by a company to directly generate other commodities, the second condition for capital that money does not meet is its ability to be invested. However, companies may gain capital by spending money on it.

One kind of financial capital is monetarily denominated currency. Money and other “paper” assets (such stocks and bonds, for example) that reflect claims on future payments are included in the definition of financial capital. Although these financial assets are not considered capital, they may be used either directly or indirectly in the acquisition of means of production, as well as products and services.

Natural Means of Production

There are two fundamental aspects that define natural resources. The first reason is because one may find them in natural settings, which means that no human hand was involved in their creation or modification in any way. The second advantage is that they may be put to use in the manufacturing of various products and services. This needs knowledge; in order to make use of the things we discover in nature before they become resources, we need to know how to put those things to use.

Consider oil. The oil that is found in the ground is considered a natural resource since it is not made but rather discovered, and it may be put to use in the production of various commodities and services. However, 250 years ago, oil was not considered a natural resource; rather, it was considered a nuisance. When Pennsylvania farmers in the eighteenth century discovered oil seeping up through their earth, they were not overjoyed but rather disheartened by the discovery.

Nobody understood what the oil’s potential use were. It was not until the middle of the nineteenth century that a process for refining oil into kerosene that could be used to create electricity, so making oil into a natural resource. This was accomplished by the discovery of a way to convert oil into kerosene. Oil is now employed in the production of a wide variety of goods, including textiles, pharmaceuticals, fuel, and plastic. The fact that humanity figured out how to utilize it and then put that knowledge into practice made it become a natural resource.

If something is only considered a natural resource if it has the potential to be utilized in the production of goods and services, this does not always imply that a tree is valuable just for the wood it produces or that a mountain is valuable only for the minerals it contains. When people are able to benefit in some way from the presence of a beautiful wilderness region, we may say that this wilderness area offers a service to the people. The undeveloped land thus constitutes a natural resource.

There are three ways that we may increase the natural resources that are at our disposal. One of them is the unearthing of previously unknown natural resources, such as the finding of a previously unexplored mineral deposit that contains titanium. The second factor is the emergence of previously unanticipated applications for existing resources, such as the transformation of oil into a useful product or the incorporation of sand into the fabrication of computer chips.

The third is the emergence of innovative approaches to the extraction of natural resources in preparation for their use. The amount of this essential natural resource that is available on the planet has expanded as a result of the development of innovative techniques for locating and mapping oil sources.

The Role of Technology in Entrepreneurship

The economy makes use of the many elements of production at its disposal in order to generate goods and services. There are two essential components that are required in order to put these manufacturing variables into action. The first factor is technological capability, which may be defined as knowledge that is capable of being used in the creation of products and services. The second kind is a type of person who is essential to the functioning of a market economy and that is the entrepreneur.

An entrepreneur is a person who, within the framework of a market economy, strives to gain profits by discovering innovative methods to arrange elements of production. This is done in the hopes of increasing overall efficiency and lowering costs. Bureaucrats and other decision makers react to incentives other than profit to drive their choices concerning resource allocation decisions in non-market economies, which means that the job of the entrepreneur is fulfilled by bureaucrats rather than business owners.

The dynamic between business owners and technological advancements has an impact on all of our lives. Every day, entrepreneurs put new technologies to work, which results in a shift in the manner that production elements are used. Farmers and factory employees, engineers and electricians, technicians and instructors all do their jobs in significantly different ways now compared to only a few short years ago thanks to new technology that were introduced by business owners.

The production of the music you like to listen to, the books you like to read, and the sporting goods you use are all different from how they were created five years ago. You are now reading a book that was authored and produced using technology that did not exist 10 years ago when you purchased it. There is room for debate over whether or not all of the improvements have made our lives better. The fact that they have altered the course of our life is something that we cannot deny.

Which Considerations Are Included in the Decision-Making Process Regarding the Checking of All Goods and Services?

Labor, capital, and natural resources make up an economy’s pool of available options for manufacturing goods. The creation of products and services requires a certain amount of human effort, which may be referred to as labor. The labor that is deemed to be accessible to the economy consists of both already working individuals and those who are capable of finding work.

Which of the Following Best Illustrates the Decisions That Need to Be Made in Order to Produce a Particular Product?

The appropriate response to your inquiry is choice (A), which asks whether we should manufacture jeans using costly technology or manpower that is less expensive. Prior to manufacturing a product that is going to be sold on the market, one must first determine how to make it even more superior.

Which One Of These Is Not An Example Of A Capital Resource Quizlet?

They are components that go into the making of products and services, and if there were more of them accessible, there would be no need to worry about scarcity. They are the components that go into the making of products and services. The following are some examples of capital resources: A share of ownership in a firm that develops computer software.

Which Factor Should Be Taken Into Account by a Society Before Making a Choice About Who Should Procreate?

The question of who has a need for the products and services that are going to be created is the first thing that has to be answered before making a decision on who will get them.

What aspects of an item contribute to its overall value?

The right response is option d., which refers to the resources used up in manufacturing. Price in the marketplace is often used as a representation of an item’s worth.

What are the most important questions in economics, the answers to which include choosing a method for?

Determining the best way to distribute commodities and services is a major issue in the field of economics, and it’s also one of its most contentious problems.

What are the steps involved in calculating the opportunity cost?

Making decisions and accepting the repercussions of such decisions are required in order to properly evaluate the opportunity cost… Making decisions and living with the repercussions of those decisions.

How exactly does a production possibility chart help in laying out an opportunity cost?

How exactly does a production potential chart help in determining what the opportunity cost is? It does this by comparing the manufacturing figures of one product with those of another… Because they are interested in growing their business, they devise a production potential chart in order to determine whether or not selling potted plants is a worthwhile endeavor.

What are the arguments that those who oppose the wealth gap make?

It’s possible that those who are opposed to the wealth gap would say that:… the rich are unable to make investments. The demand from consumers is higher than the supply that manufacturers can provide. It is expected that economic growth will slow down over time.

What are the four factors that go into producing something?

Land, labor, capital, and entrepreneurial initiative are the four subcategories that economists use to classify the components of production. The land itself is the primary element of production, but this also includes any other natural resource that is used in the making of commodities and services. This encompasses not just the land itself but also everything that originates from the land.

In a command economy, who makes the decisions on how goods and services will be produced?

In a command economy, production is under the authority of the government.
In related news, fatty acids are the fundamental component of this macromolecule?
The government has significant influence over key facets of economic output in a command economy. The means of production are decided by the government, and the industries that generate products and services for the public are owned by the government.

What Are the Three Economic Concerns That Relate to Making a Decision?

The topic of who should be responsible for the production of commodities and services is one of the three fundamental problems in economics. products and services on the market get physical items and/or services.

Which factor is most important for a society to take into account when determining who will be responsible for the production of a potentially scarce or limited resource?

When determining for whom to manufacture anything, which considerations need to be taken into account? The right response is to consider who has a need for the products and services that are going to be produced.

What Are the Three Most Important Questions Regarding Economics, and Who Should Answer Them?

Every civilization must find answers to these three fundamental economic problems in order to satisfy the requirements of its people: What should we produce? How should we go about making it? Who exactly should we be producing it for?

Why Should One Consider Majoring in Economics Check All That Apply?

The study of economics teaches individuals how to effectively manage their resources. The term “product scarcity” refers to the economic causes for this phenomenon. The terms “producers” and “consumers” are defined and explained by economics. The study of economics demonstrates how individuals and groups collaborate to generate wealth.

Which Two Aspects Of The Economy Play Into The Determination Of The Value Of Something?

The price or quantity that someone is willing to pay for anything in the market is the market value, which is determined by supply and demand in the market. The advantage that a person or a firm derives from a product or service is what is meant to be measured when referring to its economic worth.

Which item is most likely to have the highest value based on the idea that there is a limited supply?

The primary thing to have the highest value based on thoughts of scarcity is a silver necklace, which has been crafted in a very excellent way. It may be obtained at a price that is much less than that of gold and platinum.

How Can I Determine the Worth of My Collectibles?

Auction selling prices are one of the numerous techniques that collectors use to determine the worth of the items they own. There are many more approaches as well.
Online pricing guides.
Written pricing guidelines.
Services of valuation both on and off the internet.
Local antique and collectable retailers.

Which of These Can Be Achieved via Efficient Distribution of Production Factors?

The fulfillment of many of the requirements and goals of the society is the end consequence of efficient resource allocation. This is because when there is a good allocation of resources, those resources may be preserved for use at a later time. This prevents any of the available resources from going to waste.

Why Is It Important To Know The Answers To These Three Questions About Economics Quizlet?

create different types of products and services. products and services on the market get physical items and/or services.

How can manufacturers create the greatest possible combination of their wares?

Answer Expert Verified. If the producers properly distribute their resources, they will be able to generate the greatest number of distinct combinations of items.

What kind of an impact does the cost of missed opportunities have on decision making?

Every day, we have to make choices, and those choices always carry opportunity costs. Many times in life, we are forced to choose choices that are incompatible with one another, which means that we cannot have both of those options at the same time. When this occurs, there is something known as an opportunity cost associated with the object that we did not choose… When it comes to making choices about investments, this is just as crucial.

Why Is It Important To Consider The Cost Of Opportunities When Making Decisions?

When you use the opportunity cost approach, you will take into account the reality that for every decision you make, you must give up some other potential courses of action. This enables you to make judgments that are more accurate from an economic standpoint and that optimize your resources.

Explain the concept of opportunity cost with the aid of a concrete illustration, please.

When economists talk about the “opportunity cost” of a resource, they are referring to the value of the alternative use of the resource that provides the next greatest level of value. For instance, if you spend time and money going to the movies, you won’t have the opportunity to spend that time at home reading a book, and you won’t be able to use that money for anything else.

How exactly does a production possibility chart help in laying out opportunity costs in a logical manner?

Because it compares the costs of producing one product to those of producing others, the production possibility chart or frontier is helpful in elaborating on the concept of opportunity cost. This curve, chart, or frontier will indicate the many permutations and mixtures of two distinct products that may be generated using the resources that have been provided. This is its function.

How exactly may technological advancements make the distribution of goods more efficient?

The use of automation makes the production of things easier and less expensive. Workers from all around the globe might be hired by manufacturing companies. Container ships are able to carry many types of cargo at the same time.

What advantages does it provide to the manufacturer to make use of less scarce resources?

What advantages does it provide a manufacturer to make use of a smaller portion of the available resources? Producing the product would need less resources than usual.

Which of the following examples best illustrates the process of choosing how to produce a certain product?

The appropriate response to your inquiry is choice (A), which asks whether we should manufacture jeans using costly technology or manpower that is less expensive. Prior to manufacturing a product that is going to be sold on the market, one must first determine how to make it even more superior.

Which of the following is a valid argument against the hypothesis that the wealth gap exists?

Which of the following statements is not consistent with the assumption that the wealth gap is a critical issue that requires immediate attention? Jobs for those in lower classes are generated by investments made by those in higher classes. What do you consider to be the most accurate definition of ownership?

In an economy with both free and controlled markets, what steps can the government take to narrow the wealth gap?

How can the government work to narrow the wealth gap in an economy that has elements of both free and controlled markets? The government is able to exert some kind of control over levels of income by imposing restrictions on the amount that residents are… To compensate for the disparities in income, the government may choose to levy a lower tax rate on those who belong to the rich class.

What factors have the greatest impact on the overall output of goods and services?

Capital and labor are the two components of the manufacturing process that provide the greatest… The term “labor” refers to the time that individuals spend working, whereas the term “capital” refers to the instruments that workers utilize.

What are the most important aspects of the Class 9 production process, including the goods and services?

Land, labor, physical capital, and human capital are the four variables that go into the process of producing anything.

What are the five factors that go into producing something?

The phrase “factors of production” comes from the field of economics and refers to the inputs that go into the creation of products or services with the purpose of making a profit.
These components comprise any resource that is necessary for the production of a products or provision of a service.
Land, labor, capital, and entrepreneurial initiative are the variables that go into producing goods.
Check out this article to learn another name for a well-informed estimate.

Who Makes the Choices Regarding Which Goods and Services Are Made Available in a Free Market Economy?

In a free market economy, producers have the ability to choose what to create, how much to produce, how much to charge consumers for the commodities they sell, and how much to pay their workers. The demands of competition, supply and demand, and other market forces all have an impact on these choices in a free-market economy.

F.A.Q which factors are considered when deciding how to make goods and services? choose three answers.

F.A.Q which factors are considered when deciding how to make goods and services? choose three answers.
F.A.Q which factors are considered when deciding how to make goods and services? choose three answers.

When selecting how commodities and services should be produced, what kinds of considerations need to be given priority?

The factors of production are an essential economic concept that outlines the components that must be present in order to generate a thing or service that can be sold. Land, labor, money, and entrepreneurial spirit are the traditional categories used to divide them up into their component parts.

What are the three most fundamental questions in economics?

The three fundamental problems that are addressed by economic systems are as follows: what will be produced, how will it be produced, and how will the product that society generates be distributed?

Which of the following examples best demonstrates why it is essential to find answers to the three issues that economics poses?

Which of the following examples best demonstrates why it is essential to find answers to the three issues that underlie economics? The wants and requirements of people are always evolving.

Which of these factors should be taken into account while making a decision?

The question of who has a need for the products and services that are going to be created is the first thing that has to be answered before making a decision on who will get them.

 

 

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