Which of the following is NOT considered a factor of production?

• A. Land
• B. Capital
• C. Labor
• D. Money

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the concept of factors of production. Factors of production are the inputs used in the production of goods and services. They typically include Land, Labor, Capital, and sometimes Entrepreneurship.
2. Step 2: Define each factor: Land refers to natural resources; Labor is human effort; Capital includes machinery, tools, and buildings used in production; Entrepreneurship is the ability to organize the other factors.
3. Step 3: Analyze the options given: Land, Capital, and Labor are all classic factors of production because they directly contribute to producing goods and services.
4. Step 4: Consider Money: Money is not a factor of production because it does not directly produce goods or services; instead, it is a medium of exchange used to facilitate transactions.
5. Step 5: Conclude that Money is NOT considered a factor of production, as it does not directly contribute to the production process.