Which of the following lists includes all five commonly recognized factors of production in economics?

• A. Land, Labor, Capital, Money, Management
• B. Land, Labor, Capital, Raw Materials, Government
• C. Land, Labor, Capital, Innovation, Trade
• D. Land, Labor, Capital, Entrepreneurship, Technology

Answer: (D)

Verified step by step guidance

1. Recall the definition of the five commonly recognized factors of production in economics. These are the inputs used to produce goods and services.
2. Identify each factor: Land refers to natural resources; Labor is human effort; Capital includes machinery and tools; Entrepreneurship involves organizing the other factors and taking risks; Technology represents knowledge and innovation that improve production.
3. Review each list provided in the problem and check if it contains all five factors: Land, Labor, Capital, Entrepreneurship, and Technology.
4. Note that Money, Government, Raw Materials, Innovation, and Trade are important economic concepts but are not traditionally classified as one of the five factors of production.
5. Conclude that the list containing Land, Labor, Capital, Entrepreneurship, and Technology correctly includes all five commonly recognized factors of production.