Which of the following best describes labor utilization in the context of factors of production?

• A. The allocation of financial resources to purchase machinery and equipment.
• B. The management of technological innovation to increase productivity.
• C. The use of natural resources such as land and minerals in production.
• D. The process of employing human effort and skills to produce goods and services.

Answer: (D)

Verified step by step guidance

1. Understand that labor utilization refers specifically to how human effort and skills are applied in the production process.
2. Recognize that factors of production include land, labor, capital, and entrepreneurship, each representing different inputs in production.
3. Identify that labor utilization focuses on the employment and effective use of human resources, rather than financial resources, technology, or natural resources.
4. Compare the given options to see which one directly relates to human effort and skills being used to produce goods and services.
5. Conclude that the best description of labor utilization is the process of employing human effort and skills to produce goods and services.