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

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

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of factors of production. In economics, factors of production are the resources used to produce goods and services. They typically include Land, Labor, Capital, and Entrepreneurship.
2. Step 2: Define each option given: Labor refers to human effort used in production; Capital refers to man-made resources like machinery and tools; Land refers to natural resources; Money, however, is not a productive resource but rather a medium of exchange or a financial asset.
3. Step 3: Analyze why Money is not a factor of production. Money facilitates transactions but does not directly contribute to the production process itself.
4. Step 4: Compare all options to the standard list of factors of production and identify which one does not fit the definition.
5. Step 5: Conclude that Money is NOT considered a factor of production because it does not directly produce goods or services.