Multiple Choice
In the context of factors of production, how does the control of resources differ between a market economy and a command economy?
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0. Basic Principles of Economics
Factors of Production
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The manufacturing of garden equipment is an example of which primary factor of production?
A
Entrepreneurship
B
Land
C
Labor
D
Capital
Verified step by step guidance1
Understand the primary factors of production, which are Land, Labor, Capital, and Entrepreneurship.
Identify what each factor represents: Land refers to natural resources, Labor is human effort, Capital includes manufactured goods used to produce other goods, and Entrepreneurship is the ability to organize and take risks.
Analyze the example given: manufacturing garden equipment involves using machinery, tools, and buildings, which are all examples of Capital.
Recognize that Capital is distinct from Labor (human work) and Land (natural resources) because it consists of physical assets used in production.
Conclude that manufacturing garden equipment is an example of the Capital factor of production because it involves using physical tools and machinery.
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