Question

John has a large apple orchard. He has decided to bake pies and sell them at the local farmer’s market. Which best describes John’s use of economics?

Answer 1

Answer: He is using natural resources.

Explanation:

Answer 2

Answer:

- John is using available and renewable resources.

Explanation:

Economics is primarily associated with the allocation of limited resources for the production of goods and services and the distribution as well as consumption of these goods and services.

As per the question, John's use of economics is reflected by his 'use of limited available and renewable resources'(apple orchard) to produce goods(in the form of 'Pies') for distribution and consumption('selling them in the market'). Thus, the land(orchard), labor(John himself), capital(his time and money in making pies from apples) act as the factors of production in this economic activity.