When making a location decision at the region or community level, which factor of production is most likely to be influenced by local infrastructure and access to transportation?

• A. Labor
• B. Capital
• C. Entrepreneurship
• D. Land

Answer: (D)

Verified step by step guidance

1. Understand the four factors of production: Land, Labor, Capital, and Entrepreneurship. Each factor represents a different input used in the production process.
2. Recognize that 'Land' in economics refers not only to physical land but also to natural resources and location-specific attributes, including infrastructure and transportation access.
3. Analyze how local infrastructure (such as roads, ports, and utilities) and transportation access affect the availability and quality of the factor of production. These elements are tied directly to the physical location and natural environment, which fall under 'Land'.
4. Consider that Labor refers to human effort, Capital to machinery and equipment, and Entrepreneurship to the ability to organize production. While these can be influenced by location, they are not as directly dependent on infrastructure and transportation as Land is.
5. Conclude that when making location decisions at the regional or community level, the factor of production most influenced by local infrastructure and transportation access is Land.