What does the term 'productive mechanism' refer to in an economy?

• Involves resource allocation.

• Transforms inputs to outputs.

• Meets consumer demands effectively.

Riddle: I can be created by storing goods at one time and supplying them at another time when in demand. What am I?

What is an example of service utility?

The services of doctors, teachers, lawyers, and chartered accountants create utility by fulfilling specific needs of individuals.

Multiple Choice: Which of the following is NOT a type of utility? A) Form Utility B) Place Utility C) Demand Utility D) Time Utility

Fill in the blank: Land includes all natural resources such as minerals, water, and ___.

Forests

Fill in the blank: The demand for a factor of production is derived from the demand for the ___ product.

Multiple Choice: Which of the following is considered a primary factor of production? A) Capital B) Labor C) Entrepreneurship D) None of the above

B) Labor

Riddle: I am not mobile like labor, but I provide a foundation for all economic activities. What am I?

Land

True or False: All factors of production have a physical presence.

The law of diminishing marginal returns states that increasing labor and capital on a specific piece of land will lead to ___ .

True or False: Land can be easily relocated from one place to another.

Fill in the blank: The availability of land resources directly influences the level of ___ production.

Agricultural

The variability in fertility of land is influenced by factors such as ___, irrigation facilities, and climatic conditions.

Soil composition