From the point of view of producers, which of the following is NOT considered a factor of production?

• A. Consumer demand
• B. Labor
• C. Land
• D. Capital

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of factors of production. Factors of production are the inputs used by producers to create goods and services. They typically include Labor, Land, and Capital.
2. Step 2: Define each factor of production: Labor refers to human effort used in production; Land includes natural resources; Capital refers to man-made resources like machinery and tools.
3. Step 3: Analyze the option 'Consumer demand'. Consumer demand represents the desire and willingness of consumers to buy goods and services, which influences production decisions but is not an input used directly in production.
4. Step 4: Compare 'Consumer demand' with the other options (Labor, Land, Capital) and recognize that it does not fit the definition of a factor of production because it is not a resource or input used by producers.
5. Step 5: Conclude that 'Consumer demand' is NOT considered a factor of production from the producer's perspective.