Which three factors of production are interrelated such that a change in one often leads to changes in the others?

• A. Land, entrepreneurship, and technology
• B. Capital, profit, and demand
• C. Labor, money, and government
• D. Land, labor, and capital

Answer: (D)

Verified step by step guidance

1. Identify the three main factors of production in microeconomics: land, labor, and capital. These are the fundamental inputs used to produce goods and services.
2. Understand that these factors are interrelated because a change in one factor often affects the others. For example, an increase in capital (like machinery) can increase the productivity of labor.
3. Recognize that land refers to natural resources, labor to human effort, and capital to man-made resources used in production. Changes in availability or quality of one can influence the demand or productivity of the others.
4. Analyze why other options are incorrect: profit and demand are outcomes or market concepts, not factors of production; money and government are not considered primary factors of production in microeconomics.
5. Conclude that the correct interrelated factors of production are land, labor, and capital, as changes in one typically lead to changes in the others.