Which factor of production is primarily responsible for acquiring raw materials and resources and distributing them to manufacturing as required?

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

Answer: (B)

Verified step by step guidance

1. Understand the definition of each factor of production: Land refers to natural resources; Labor is the human effort used in production; Capital includes machinery, tools, and buildings; Entrepreneurship involves organizing resources and taking risks to create and run a business.
2. Identify the role described in the problem: acquiring raw materials and resources and distributing them to manufacturing as required.
3. Recognize that acquiring and distributing resources involves decision-making, coordination, and risk-taking, which are characteristics of entrepreneurship.
4. Note that Labor typically refers to the physical or mental work done, Land is the source of raw materials but not responsible for distribution, and Capital refers to tools and machinery, not the management of resources.
5. Conclude that the factor of production responsible for acquiring and distributing raw materials is Entrepreneurship, as it involves organizing and managing the other factors effectively.