Which statement about an economy's resources is the most accurate?
A) They consist of land, labour, capital, and entrepreneurial skills.
B) They consist of land, labour, and entrepreneurial skills, but not capital.
C) They are always efficiently utilized in wealthy nations.
D) They are unlimited in a country like Canada.

Question

Quizplus · Accepted Answer

The resources of an economy are commonly categorized into four factors of production: land, labour, capital, and entrepreneurial skills. While there may be some variations in how these factors are defined, this is the most commonly accepted framework for understanding an economy's resources. Option B is incorrect as capital is a critical component of an economy's resources. Option C is incorrect as no economy can claim to be perfectly efficient in its resource usage. Option D is untrue as every country has finite resources, with varying levels of abundance and scarcity for each factor of production depending on the specific context.

Which Statement About an Economy's Resources Is the Most Accurate