Which of the following is NOT an example of a factor of production?

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

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the definition of factors of production. Factors of production are the inputs used in the production of goods and services. They typically include Land, Labor, Capital, and Entrepreneurship.
2. Step 2: Identify each option given in the problem and classify it according to the factors of production. For example, Land refers to natural resources, Labor refers to human effort, and Capital refers to man-made resources used in production.
3. Step 3: Analyze the option 'Money' and determine if it fits the definition of a factor of production. Money is a medium of exchange and a store of value, but it is not directly used to produce goods or services.
4. Step 4: Conclude that Money is not a factor of production because it does not directly contribute to the production process, unlike Land, Labor, and Capital.
5. Step 5: Summarize that the correct answer is Money, as it is not considered a factor of production.