In the Context of Factors of Production, Which of the Following

question 17

Multiple Choice

In the context of factors of production, which of the following statements is true of entrepreneurs?

• A) They are people who write and establish government policies.
• B) They avoid taking the risk of launching and operating their own businesses.
• C) They thrive in an environment that supports economic freedom.
• D) They are rarely motivated by any profit incentive to run a business.

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Definitions:

Raw Materials

Raw materials are the basic, unprocessed inputs used in the manufacturing process to produce finished goods.

Journal Entry

The record of a transaction entered in a journal, made up of at least one debit and one credit.

Work In Process

Inventory that includes items that are partially completed; it is not yet a finished product but has been moved from raw materials inventory.

Machine Breakdowns

Unplanned events where machinery or equipment fails and stops production, leading to potential delays and increased costs.