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

Question

Quizplus · Accepted Answer

There are five major categories of factors of production: land, labor, capital, entrepreneurship, and knowledge. Poor nations often have plenty of labor and land, but lack entrepreneurship and knowledge resources. Thus, the only accurate statement is that knowledge and entrepreneurship are the most important factors of production for the creation of wealth.

Which of the Following Statements About Factors of Production Is