Which of the following is a limitation of the factors of production?

• A. Labor can always be increased without any cost.
• B. Land resources are finite and cannot be increased at will.
• C. Capital is unlimited and does not require investment.
• D. Entrepreneurship does not face any risks or constraints.

Answer: (B)

Verified step by step guidance

1. Understand the concept of factors of production, which typically include land, labor, capital, and entrepreneurship.
2. Recognize that each factor has its own limitations or constraints in the real world.
3. Analyze the statement about land: Land resources are finite and cannot be increased at will, meaning there is a natural limit to how much land is available for production.
4. Evaluate the other options: Labor usually involves costs and cannot be increased infinitely without cost; capital requires investment and is not unlimited; entrepreneurship involves risks and constraints.
5. Conclude that the key limitation among the options is that land is finite, which restricts production capacity and economic growth.