The factors of production are which of the following?
A) The outputs generated by the production process of transforming land, labor, and capital into goods and services.
B) The land resources, such as natural resources, that are unimproved by human economic activity.
C) Land (natural resources), labor (human capital, entrepreneurship), and capital (constructed inputs such as factories).
D) Labor and capital in industrialized countries, where natural resources are no longer used to produce goods and services.

Question

Quizplus · Accepted Answer

The factors of production are land (natural resources), labor (human capital, entrepreneurship), and capital (constructed inputs such as factories). Option A is incorrect as outputs are not factors of production. Option B is incorrect as it only refers to natural resources, while factors of production include human and constructed inputs as well. Option D is incorrect as it assumes industrialized countries do not use natural resources to produce goods and services, which is not true.

The Factors of Production Are Which of the Following