Which statement about economic resources is accurate?

• A. Economic resources do not play a role in determining the opportunity cost of production.
• B. Economic resources are unlimited and freely available to all producers.
• C. Economic resources refer only to money and financial assets used in production.
• D. Economic resources are also known as factors of production and include land, labor, capital, and entrepreneurship.

Answer: (D)

Verified step by step guidance

1. Understand the definition of economic resources: Economic resources, also called factors of production, are the inputs used to produce goods and services.
2. Identify the main categories of economic resources: These include land (natural resources), labor (human effort), capital (machinery, tools, buildings), and entrepreneurship (the ability to organize and take risks).
3. Recognize that economic resources are scarce, meaning they are limited in supply, which is why opportunity cost arises when choosing how to allocate them.
4. Note that economic resources are not limited to money or financial assets; money is a medium of exchange, not a resource used directly in production.
5. Conclude that the accurate statement is the one that correctly lists economic resources as land, labor, capital, and entrepreneurship, highlighting their role as factors of production.