In order for the economy to be strong, individuals must:

• A. efficiently utilize and develop the factors of production
• B. consume more than they produce
• C. rely solely on natural resources without investing in capital
• D. avoid specialization in any economic activity

Answer: (A)

Verified step by step guidance

1. Understand the concept of factors of production, which include land, labor, capital, and entrepreneurship. These are the resources used to produce goods and services in an economy.
2. Recognize that an economy is considered strong when it uses these factors efficiently, meaning it maximizes output from the available resources without waste.
3. Consider why consuming more than producing is not sustainable, as it can lead to deficits and depletion of resources, weakening the economy.
4. Evaluate the role of capital investment and development, which enhances productivity and supports long-term economic growth, unlike relying solely on natural resources.
5. Understand the importance of specialization, which allows individuals and firms to focus on specific tasks, increasing efficiency and overall economic output.