The key distinction between a factor of production and an input is that:
A) an input is an enduring source of income, but a factor of production is used up in production.
B) a factor of production earns income from selling its services over and over again, but an input cannot.
C) an input earns income from selling its services over and over again, but a factor of production cannot.
D) a factor of production has limited earning potential.

Question

Quizplus · Accepted Answer

A factor of production, such as labor or capital, earns income repeatedly by providing its services, whereas an input is typically consumed or used up in the production process.

The Key Distinction Between a Factor of Production and an Input