Question

Alexandra owns a small landscaping business. She hires a​ part-time employee to handle the bookkeeping activities. Which factor of production does this employee​ represent?
A.
Physical resources
B.
Capital
C.
Labor
D.
Entrepreneurs
E.
Information resources

Answer 1

Answer:

The correct answer is C, Labor.

Explanation:

In this example the employee represents the Labor factor of production. Labor is the force consist of people who uses the other resources to make the things done. So Alexandra hired a part time employee who handles the book keeping activities of the company, that means he is putting his mental and physical efforts to keep the records. So he falls in the Labor category of the Factors of Production.

Answer 2

Answer: C Labor

In economics, labor refers to physical and mental effort by human beings that is required to produce goods and services in an economy.

Labor refers to all workers who offer their services in exchange for money i.e. they work for gain.

Labor also refers to all the people who work, but don't accumulate and provide the resources for starting a business and do not bear the risk associated with the business.

In the question above, Alexandra owns the business and pays the part-time book-keeper for his services. So, the book keeper represents labor.