<u>The option D is correct. Goods and services are not a factor of production. </u>
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
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2. Learn more about demand and supply diagram
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3. Learn more about trade-offs
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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.