What are factors of production?

A.

all the human efforts involved in the production process

OB.

all the resources used to produce any goods and services

all the physical tools and equipment used in the production process

C.

D.

all the naturally occurring resources found in land, air, and water

Question

Business

Kadin Hardy

29 May, 16:00

What are factors of production?

A.

all the human efforts involved in the production process

OB.

all the resources used to produce any goods and services

all the physical tools and equipment used in the production process

C.

D.

all the naturally occurring resources found in land, air, and water

+1

Answers (1)

Know the Answer?

Zavier Ballard · Answer 1

B. all the resources used to produce any goods and services

Explanation:

Factors of production are all the resources used in the production of new goods and services. They are the inputs that go into the production process. Factors of production are classified into four, including land, labor, capital, and entrepreneurship.

Option A represents labor, which is the human contribution in the production process. Human beings contribute skills, time, and energy and get rewarded with salaries and wages.

Option C, which is all the physical tools and equipment used in the production process, represent capital.

Land in economics will refer to farmlands, business premises, air, and natural resources, which option D describes.

Entrepreneurship is the process of forming a business that undertakes production by binging together the inputs. The entrepreneur is the person who starts the business.

What are factors of production?A.all the human efforts involved in the production processOB.all the resources used to produce any goods and servicesall the physical tools and equipment used in the production processC.D.all the naturally occurring resources found in land, air, and water