Which of the following is considered a firm's "factor of production"?
A) money or cash balances of the firm
B) the firm's shares of common stock
C) U.S. Treasury bonds owned by the firm
D) the office building occupied by the firm

Question

Quizplus · Accepted Answer

Factors of production refer to the resources that firms use to produce goods and services. These include land, labor, capital, and entrepreneurship. In this case, the office building occupied by the firm is an example of "land" as a factor of production. Money or cash balances, shares of common stock, and U.S. Treasury bonds are not considered factors of production.

Which of the Following Is Considered a Firm's "Factor of Production