Which of the following lists correctly identifies the four main factors of production in economics?

• A. Labor, Capital, Management, Resources
• B. Land, Labor, Capital, Entrepreneurship
• C. Land, Capital, Innovation, Goods
• D. Land, Labor, Technology, Money

Answer: (B)

Verified step by step guidance

1. Understand that the four main factors of production in economics are the essential inputs used to produce goods and services.
2. Recall the standard classification of these factors: Land, Labor, Capital, and Entrepreneurship.
3. Recognize that 'Land' refers to natural resources, 'Labor' to human effort, 'Capital' to man-made resources used in production, and 'Entrepreneurship' to the ability to organize and take risks.
4. Evaluate each list given in the problem to see if it matches these four categories exactly.
5. Identify the list that contains Land, Labor, Capital, and Entrepreneurship as the correct set of the four main factors of production.