An economic system's factors of production consist of:
A) its stock of financial wealth.
B) all the goods produced for household consumption during a given time period.
C) goods and services used in the production of output.
D) its stock of financial capital used to invest in plants and equipment.

Question

Quizplus · Accepted Answer

Factors of production refer to the inputs used in the production of goods or services in order to make an economic profit. These typically include land, labor, capital, and entrepreneurship. Option C, "goods and services used in the production of output," most closely aligns with this definition, as it encompasses the resources and inputs used in the creation of products or services. Options A, B, and D focus on financial wealth, household consumption goods, and financial capital for investment, respectively, which do not directly represent the broad categories of inputs used across all types of production.

An Economic System's Factors of Production Consist Of