Which of the following best describes the factors of production in economics?

• A. Land, labor, capital, and entrepreneurship
• B. Money, technology, government, and trade
• C. Supply, demand, equilibrium, and profit
• D. Goods, services, prices, and demand

Answer: (A)

Verified step by step guidance

1. Understand that factors of production are the inputs used in the production of goods and services in order to make an economic profit.
2. Recall the four main categories of factors of production: land, labor, capital, and entrepreneurship.
3. Land refers to all natural resources used in production, such as minerals, forests, and water.
4. Labor represents the human effort, both physical and mental, used in producing goods and services.
5. Capital includes man-made resources like machinery, buildings, and tools that aid production, while entrepreneurship is the ability to organize these factors and take risks to create goods and services.