Which of the following statements is true?
A) Land refers only to farm land, oil, and coal reserves.
B) Money is important for economic activity, but it is not a factor of production.
C) Stocks and bonds are included in the factor of production category termed capital.
D) Labor refers to unskilled workers; all other human effort is classified as entrepreneurship.

Question

Quizplus · Accepted Answer

Money is crucial for facilitating economic activity by acting as a medium of exchange, a unit of account, and a store of value. However, it is not considered a factor of production itself. Factors of production include land, labor, capital (physical capital like machinery and buildings, not financial capital like stocks and bonds), and entrepreneurship. These are the inputs used to produce goods and services.

Which of the Following Statements Is True