Multiple Choice
Which of the following is a factor that could cause demand to decrease for certain goods during a pandemic?
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0. Basic Principles of Economics
Factors of Production
Multiple Choice
In microeconomics, routes such as transportation networks are built based on which factor of production?
A
Land
B
Labor
C
Capital
D
Entrepreneurship
Verified step by step guidance1
Identify the four factors of production in microeconomics: Land, Labor, Capital, and Entrepreneurship.
Understand that 'Land' refers to natural resources, 'Labor' refers to human effort, 'Entrepreneurship' involves organizing resources and taking risks, and 'Capital' refers to man-made goods used to produce other goods and services.
Analyze the nature of transportation networks and routes: they are physical infrastructures like roads, bridges, and railways.
Recognize that these infrastructures are man-made tools and equipment used to facilitate production and distribution, which classifies them as 'Capital'.
Conclude that transportation networks are built based on the factor of production called 'Capital' because they are physical assets created to aid economic activity.
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