Which of the following are factors of production?
A) The outputs generated by the production process transforming land, labor, and capital in to goods and services.
B) Restricted to the land resources such as natural resources that are unimproved by human economic activity.
C) Land (natural resources), labor (human capital, entrepreneurship), and capital (constructed inputs such as factories).
D) Just labor and capital in industrialized countries, where natural resources are no longer used to produce goods and services.

Question

Which of the following are factors of production? ​
A) ​The outputs generated by the production process transforming land, labor, and capital in to goods and services.
B) ​Restricted to the land resources such as natural resources that are unimproved by human economic activity.
C) ​Land (natural resources), labor (human capital, entrepreneurship), and capital (constructed inputs such as factories).
D) ​Just labor and capital in industrialized countries, where natural resources are no longer used to produce goods and services.

Quizplus · Accepted Answer

Factors of production are the resources required for production. These include land (natural resources), labor (human capital, entrepreneurship), and capital (constructed inputs such as factories). Option A is incorrect as outputs generated are not factors of production, but the result of the factors of production. Option B is also incorrect as it restricts factors of production to natural resources only. Option D is incorrect as it wrongly assumes that natural resources are no longer used in industrialized countries.

Which of the Following Are Factors of Production? ​

Which of the Following Are Factors of Production?