The physical and mental effort people use to produce goods and services is a description of which factor of production?
A) physical capital
B) human capital
C) labor
D) entrepreneurship

Question

Quizplus · Accepted Answer

Labor refers to the physical and mental effort people use to produce goods and services. Physical and mental effort is not included in the definition of physical capital, which refers to tools and equipment used in production. It is also different from human capital, which refers to the knowledge, skills, and experience of workers. Finally, entrepreneurship refers to the process of creating something new or innovative, and while it may involve physical and mental effort, it is not equivalent to labor.

The Physical and Mental Effort People Use to Produce Goods