Which of the following statements about factors of production is the most accurate?
A)entrepreneurship and knowledge are the most important in creating wealth.
B)each of the factors of production is equally important in creating wealth.
C)wealth creation in poor nations is slowed by chronic shortages of labour.
D)the five factors of production are energy,capital,labour,leadership and money.

Question

Quizplus · Accepted Answer

While all of the factors of production (land, labor, capital, entrepreneurship/management) are important, many economists argue that entrepreneurship and knowledge are the most crucial in creating wealth as they drive innovation and technological advancements. Additionally, some poor nations may experience labor shortages, but this is not a universal problem and can be addressed through investment in education and job training programs. The answer of choice D is incorrect as there are only four factors of production recognized in most economic models: land, labor, capital, and entrepreneurship/management.

Which of the Following Statements About Factors of Production Is