Multiple Choice
When the cost to replace a supplier is high, how can a lead firm most effectively improve the supplier's performance?
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0. Basic Principles of Economics
Factors of Production
Multiple Choice
With respect to factors of production, which of the following is NOT considered a primary factor?
A
Money
B
Entrepreneurship
C
Labor
D
Land
Verified step by step guidance1
Step 1: Understand the concept of factors of production. These are the inputs used in the production of goods and services. They are typically categorized into primary factors and sometimes secondary factors.
Step 2: Identify the primary factors of production. Traditionally, the primary factors include Land, Labor, and Capital. Entrepreneurship is often considered a special factor or a subset of capital because it involves organizing the other factors.
Step 3: Recognize that 'Money' is not a factor of production. Money is a medium of exchange and a financial tool, but it does not directly contribute to the production process like land, labor, or entrepreneurship.
Step 4: Compare each option to the definition of primary factors. Land, Labor, and Entrepreneurship directly contribute to production, while Money facilitates transactions but is not itself a productive input.
Step 5: Conclude that among the options given, Money is NOT considered a primary factor of production.
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