Money is most likely an example of which of the following?

• A. A natural resource
• B. A factor of production
• C. A public good
• D. A medium of exchange

Answer: (D)

Verified step by step guidance

1. Understand the definitions of each option: A natural resource is something that comes from the environment and is used in production (like water or minerals).
2. A factor of production refers to inputs used to produce goods and services, such as labor, capital, land, and entrepreneurship.
3. A public good is a good that is non-excludable and non-rivalrous, meaning one person's use doesn't reduce availability to others and people cannot be easily excluded from using it.
4. Money functions primarily as a medium of exchange, which means it is used to facilitate transactions by eliminating the inefficiencies of barter.
5. Therefore, identify that money does not fit the categories of natural resource, factor of production, or public good, but rather serves as a medium of exchange.