Which of the following is an example of labor as a factor of production?
A) People who bring together the skills necessary for creating products and services.
B) The skills and abilities of workers.
C) People who are paid an hourly wage but not those paid a salary.
D) A college or university that educates people.

Question

Quizplus · Accepted Answer

Labor refers to the physical and mental effort that workers contribute to the production of goods and services. This encompasses their skills, abilities, and expertise, which are essential inputs into the production process. Thus, choice (B) is an example of labor as a factor of production. Choice (A) also involves people, but it is too vague and does not specifically refer to labor. Choices (C) and (D) are not relevant to the definition of labor as a factor of production.

Which of the Following Is an Example of Labor as a Factor