Question

N economics, when discussing the factors of production, the term land refers to A) farmland. B) real estate. C) capital goods. D) all natural resources.

Answer 1

The correct answer is D.

The factor of production called land involves all inputs and facilities that are natural hence, not artificially produced by humans (that would be the case of capital goods, such as machines, for example). Land refers to raw materials, minerals, energy sources and also both arable and constructible soils.

The retribution paid for this factor of production is called rent.