Multiple Choice
An industry has lowered its labor costs through which of the following methods?
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0. Basic Principles of Economics
Factors of Production
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Farms, mines, and lumber companies are examples of which factor of production?
A
Entrepreneurship
B
Land
C
Labor
D
Capital
Verified step by step guidance1
Understand the concept of factors of production, which are the resources used to produce goods and services. The main factors are Land, Labor, Capital, and Entrepreneurship.
Identify what each factor represents: Land refers to natural resources; Labor is human effort; Capital includes machinery and tools; Entrepreneurship is the ability to organize and take risks.
Analyze the examples given: farms, mines, and lumber companies all rely heavily on natural resources such as soil, minerals, and forests.
Since these examples are based on natural resources, they fall under the factor of production called Land.
Therefore, the correct classification for farms, mines, and lumber companies is the factor of production known as Land.
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