Multiple Choice
Which three factors of production are interrelated such that a change in one often leads to changes in the others?
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0. Basic Principles of Economics
Factors of Production
Multiple Choice
Which of the following is a labor resource?
A
A computer used for data processing
B
A factory worker assembling cars
C
A plot of land used for farming
D
Money invested in a business
Verified step by step guidance1
Understand the concept of 'labor' in microeconomics: Labor refers to the human effort, both physical and mental, used in the production of goods and services.
Identify the options given and classify each as either labor, capital, land, or financial resource based on their definitions.
Recognize that a computer used for data processing is a capital resource because it is a man-made tool used in production.
Note that a plot of land used for farming is a natural resource, classified as land in economic terms.
See that money invested in a business is a financial resource, not labor, as it represents capital funds rather than human effort.
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