Which of the following is an example of a factor of production?

• A. A consumer purchasing goods
• B. A government tax on income
• C. A factory building
• D. A finished product on a store shelf

Answer: (C)

Verified step by step guidance

1. Understand the definition of factors of production: these are the inputs used in the production of goods and services. They typically include land, labor, capital, and entrepreneurship.
2. Analyze each option to see if it fits the definition of a factor of production:
3. - A consumer purchasing goods is a demand-side action, not an input used to produce goods, so it is not a factor of production.
4. - A government tax on income is a fiscal policy tool and does not directly contribute to production inputs.
5. - A factory building is a form of capital, which is a classic factor of production because it is used to produce goods.
6. - A finished product on a store shelf is an output, not an input, so it is not a factor of production.