Question

Which of the following is not a factor of production?

Answer 1

Goods and services are not factors of production.

Factors of production are inputs that are needed to provide goods or services. They include, land, labor, capital, and entrepreneurship.

Further Explanation:

Factors of reproduction  

• Factors of reproduction or resources are inputs or resources that are used in the generation of goods and services with an aim of making profit.
• There are four main factors of production which include; Land, Labor, Capital and Entrepreneurship.

Land  

• This refers to all the natural resources that are available to be used in the production of goods.
• These natural resources includes raw materials from the ground, non-renewable resources such as petroleum and renewable resources such as timber.
• The income or reward earned from land as a factor of production is rent.

Labor  

• This refers to the manpower or work done by human beings.
• The value of labor depends on the skills, education and motivation of workers.  
• The reward for labor as a factor of production is wages and salaries.

Capital  

• This refers to the capital goods, that is, man-made objects that are used for production of goods and services such as machinery, equipment and chemicals.
• They also include industries and commercial buildings.
• The reward or income earned from capital goods is interest  

Entrepreneurship  

• It involves coming up with an idea and developing it into profitable business.
• An entrepreneur is therefore an individual who combines the other factors of production to build a business and add the supply in the economy.
• The reward or income earned by entrepreneurs is profit.

Keywords: Factors of production, labor, land, capital  

Learn more about

• Factors of reproduction: brainly.com/question/9637316
• Reward for factors of reproduction: brainly.com/question/9637316
• Capital goods: brainly.com/question/11672036
• Consumer goods: brainly.com/question/3227054

Level: High school  

Subject: Business  

Topic: Factors of reproduction

Answer 2

The option D is correct. Goods and services are not a factor of production.  

Further Explanation:

The factor of production is defined as the factors that are necessary to manufacture the goods and services. The factor of production is important for producing the goods. It includes labor, capital, and land but does not include goods and services.  

Justification for the correct and incorrect answer:

A.

Labor: This option is incorrect.  

Labor is an important factor of production. Without human capital, the producer can not manufacture goods and services.  This is the factor of production, so this option is incorrect.  

B.

Capital: This option is incorrect.  

The capital is also an important factor to manufacture goods and services. Money is needed to start the production of goods and services. The raw material is purchased with the money. So, this is the incorrect option.  

C.

Land: This option is incorrect.

The production is done on the land. Without the land, the producer may not able to set up the machinery and put the raw material. This is an incorrect option.  

D.

Goods and Services: This option is correct.

The factor of production is required to produce goods and services. This can not become a factor of production. So, this is the correct option.  

Learn more:

1. Learn more about goods production

brainly.com/question/9356259

2. Learn more about demand and supply diagram

brainly.com/question/2195487

3. Learn more about trade-offs

brainly.com/question/5057443

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Factor of production

Keywords:

labor, manufacture, capital, land, goods and services, factor of production, human capital, set up, machinery, raw material.