In terms of contribution to total income, the single most important factor of production is:
A) capital.
B) labor.
C) natural resources.
D) entrepreneurship.

Question

Quizplus · Accepted Answer

While all factors of production play a role in generating income, labor is typically the most significant contributor to total income. This is because labor is usually the largest expense for businesses and is necessary to produce goods and services. Without labor, capital and natural resources cannot be fully utilized, and entrepreneurship cannot create new ventures. Therefore, labor is the single most important factor of production in terms of contribution to total income.

In Terms of Contribution to Total Income, the Single Most