Multiple Choice
Which of the following is NOT one of the four broad categories of factors of production?
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0. Basic Principles of Economics
Factors of Production
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Which of the following is NOT considered one of the four main factors of production in economics?
A
Capital
B
Labor
C
Money
D
Land
Verified step by step guidance1
Step 1: Recall the four main factors of production in economics, which are the essential inputs used to produce goods and services.
Step 2: Identify each factor: Capital (tools, machinery, and buildings), Labor (human effort), Land (natural resources), and Entrepreneurship (the ability to combine the other factors and take risks).
Step 3: Understand that Money is not a factor of production; it is a medium of exchange used to facilitate transactions but does not directly produce goods or services.
Step 4: Compare the options given: Capital, Labor, Land, and Money, and recognize that Money does not fit as a factor of production.
Step 5: Conclude that Money is NOT considered one of the four main factors of production.
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