Traditional economics recognizes four broad categories or factors of production. These include:

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The four factors of production recognized in traditional economics are land, labor, capital, and entrepreneurship. Land refers to all natural resources, labor is the human effort put into production, capital is the equipment and tools used in production, and entrepreneurship is the innovation and risk-taking necessary to start and manage a business. Option A includes natural resources separately from land, which could be seen as redundant. Option B substitutes technology for entrepreneurship, which is not typically recognized as a distinct factor of production. Option D includes natural resources as a separate category from land, but otherwise aligns with traditional economic theory.

Traditional Economics Recognizes Four Broad Categories or Factors of Production