Question

Factors of production are A. inputs into the production process. B. social and political conditions that affect production. C. the mathematical calculations firms make in determining their optimal production levels. D. the physical relationships between economic inputs and outputs.

Answer 1

Answer:

The right answer is option (A).

Explanation:

There are mostly 4 main factors of production i.e. land, labor, capital, and entrepreneurship. These all can be termed as inputs into the production process.

Hence, the most appropriate answer is option (A).

While the other options are wrong because of the following reasons:

• Option (B) shows the concept of effect on production by social and political conditions, which is not a factor of production.
• Option (C) shows the concept of mathematical calculation which is also not the factor of production.
• Option (D) shows the concept of economic inputs and outputs which play a role in production but it is not one of the factors of production.