Chapter 18 Reflections- The Markets For the Factors of Production

Pretend for a moment you are the instructor developing this course.  Write 3 short answer questions for an exam over this chapter that you believe cover the most important points in the chapter. Post all three questions on your blog.  Remember that an exam only has 10 questions and yet has to assess the students' understanding of the entire unit.

Question 1: What are the three most important factors of production?

a) demand, opportunity, time
b) labor, land and capital
c) trade-offs, capital, and investors
d) none of the above

Question 2: Because factors of production are used together, the marginal product of any one factor depends on the quantities of all factors that are available. A change in the supply of one factor alters the ________________ earnings of all the factors. 

a) potential

b) assumed

c) equilibrium

d) reported

Question 3: Give an example of a trade-off an individual might have to face in the workforce? Describe the pros and cons of each.