Multiple Choice
Which of the following lists correctly identifies the four factors of production in economics?
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0. Basic Principles of Economics
Factors of Production
Multiple Choice
The people who work to produce goods and services are known as:
A
Capital
B
Land
C
Labor
D
Entrepreneurs
Verified step by step guidance1
Understand the basic factors of production in microeconomics, which include Land, Labor, Capital, and Entrepreneurship.
Recall the definition of each factor: Land refers to natural resources, Capital refers to man-made resources used in production, Labor refers to human effort used in production, and Entrepreneurs organize the other factors to produce goods and services.
Identify that the question asks for the factor that represents the people who work to produce goods and services.
Match the definition of Labor as the human effort involved in production, which directly corresponds to 'people who work'.
Conclude that the correct answer is Labor, as it specifically denotes the workforce contributing to production.
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