Question

Al Johnson owns a bakery shop. He uses flour to make the bread that he sells. Trucks and drivers bring flour to the bakery shop. Bakers are in charge of baking the bread and store clerks sell the bread. The bakers that are in charge of baking the bread represent which factor of production? A. land B. labor C. capital D. entrepreneurship

Answer 1

The bakers that are in charge of baking the bread represents the labor factor of production. They are the ones who makes it possible for the bakery to earn revenue.

Land is incorrect since bakers are people so they would not be counted as the land factor of production.

Capital is incorrect since capital stands for capital goods and capital goods are man made objects, humans are not built by humans so therefore they are not capital. However, they can also be known as human capital for the human workers in which the entrepreneurs have invested in.

Entrepreneurship is incorrect since the bakers are merely employees, they were hired and did not in fact start the bakery business.

Therefore, the answer is B. labor.