In the circular-flow diagram, A.) Factors of production: In economics, factors of production are inputs. Both AC and MC are derived from total cost (TC). Factors … 55. Which of these terms are used interchangeably? In fact it is the result of the inputs. 8. This output value may be compared to many different types of inputs such as labour and land . These factors or resources include the following: Productivity describes various measures of the efficiency of production.Often, a productivity measure is expressed as the ratio of an aggregate output to a single input or an aggregate input used in a production process, i.e. Factors of production are a. used to produce goods and services. ... Capital finance is sometimes called the fifth factor of production. output per unit of input, typically over a specific period of time. c. abundant in most economies. These are called partial measures of productivity. On the graph, illustrate outcome of the improvement of technology in Guan production. Agricultural productivity may also be measured by what is termed total factor productivity (TFP). b. also called output. AC refers to TC per unit of output and MC refers to addition to TC when one more unit of output is produced. C apital as Factor of Production:. 2. The marginal revenue (MR) of a firm is defined as the increase in total revenue for a unit increase in the firm’s output. C.) the factors of production are also called “output… ANS: A 56. d. assumed to be owned by firms in the circular-flow diagram. It consists of those goods which are produced by the economic system and are used as inputs in the pr oduction of further goods and services. In economics, Production is a process of transforming tangible and intangible inputs into goods or services. 1. Money facilitates production by providing income to the owners of production. circular flow: A model of market economy that shows the flow of dollars between households and firms. d. assumed to be owned by firms. All businesses, both for-profit and non-profit, require fundamental resources in order to operate. Meaning and Definition: C apital is an important factor of production. Capital may be physical or tangible or intangible. B.) Production is a process involving the use of different physical inputs. A curve that relates an economy's total output to the total amount of labor employed, holding all other determinants of output constant, is called an aggregate production function. Production function explains the functional relationship between physical inputs and physical output. ... That measures how much each hour of worker time produces in output. The aggregate production function shows the ________ for given levels of labor and other factors of production. But that's not accurate. c. abundant in most economies b. also called output. Factors of production are a. used to produce goods and services. 6. Factors of production are also called ‘inputs’. The product obtained from the inputs is known as ‘output’. Factors of Production: Inputs and Outputs. 7. the factors of production are labor, land, and capital. Raw materials, land, labour and capital are the tangible inputs, whereas ideas, information and knowledge are the intangible inputs. Factors of production are inputs used to produce an output, or goods and services. firms own the factors of production. Draw a production possibilities frontier showing increasing opportunity cost for Cars and Guns. In other words, r esources are the inputs used to produce outputs. These inputs are also known as factors of production. They may also refer specifically to the primary factors, which are stocks including land, labor, and capital goods applied to production. 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