Which of the following is considered a factor of production in microeconomics?

• A. Money
• B. Land
• C. Advertising
• D. Government regulation

Answer: (B)

Verified step by step guidance

1. Understand the concept of factors of production: In microeconomics, factors of production are the inputs used to produce goods and services. These typically include Land, Labor, Capital, and Entrepreneurship.
2. Analyze each option to see if it fits the definition of a factor of production:
3. Money is not a factor of production; it is a medium of exchange used to facilitate transactions but does not directly produce goods or services.
4. Land refers to all natural resources used in production, such as soil, minerals, and water, making it a classic factor of production.
5. Advertising and Government regulation are not factors of production; advertising is a marketing activity, and government regulation is a policy tool, neither directly involved in producing goods or services.