Question

All of the following are economic resources, or factors of production EXCEPT Group of answer choices land. entrepreneurship. physical capital. money.

Answer 1

Answer:

The correct answer is:

Money

Explanation:

Economic resources or factors of production are the inputs required for the creation of goods or services. They are divided into four categories:

Land: includes physical land and any other natural resources needed for production. Examples are water, natural gas, oil etc. Its reward is rent

Labour: This refers to human efforts contributed to the production of goods or services. Its reward is wages

Capital: this refers to machinery, tools and buildings that are used by humans for production. Its reward is interest

Entrepreneurship: refers to someone who combines the other three factors; land, labour and capital, to earn a profit. Its reward is profit

Money is not a factor of production because it is not directly involved in production of goods or services. However, it facilitates the processes of production like enabling purchase of machinery, payment of wages etc.