Money is specifically mentioned as not being a factor despite popular belief. Which of the following is not a factor of production? All other options are factors of production. Sciences, Culinary Arts and Personal An unproductive use of land, and therefore not a factor of production. (Delhi 2006) Ans.Returns to a factor refers to the behaviour of output when only variable factor of production is increased in the short-run and fixed factors remaining constant. Production refers to converting raw materials to usable materials. answer! This includes not just land, but anything that comes from the land. If the... A country produces two goods, X and Y. entrepreneurship. A. land B. labor C. services D. capital Get Best Price Guarantee + 30% Extra Discount Money is only a facilitator in the acquisition of those goods. c. consumer goods. The factors of production include land, labor, capital, and entrepreneurship. But money is not a factor of production because it is not directly involved in producing a good or service. The law of diminishing returns does not imply that adding more of a factor will decrease the total production, a condition known as negative returns, though in fact this is common. perfectly inelastic, (2) it is immobile, which means it cannot be moved, and (3) it is passive in nature, because it cannot produce anything on its own. All factors of production are traditionally classified in the following four groups: (i) Land: It refers to all natural resources which are free gifts of nature. A $10 note is a type of capital, therefore it is not a factor of production. (a) money (b) land (c) human capital (d) entrepreneurship. Money, however, was not considered to be a factor of production in the sense of capital stock since it is not used to directly produce any good. A COVID-19 Prophecy: Did Nostradamus Have a Prediction About This Apocalyptic Year? As a medium of exchange, money is used to acquire raw materials and other... Our experts can answer your tough homework and study questions. The Federal Reserve Bank of St. Louis lists the four factors of production as labor, land, capital and entrepreneurship; anything not in these categories is not a factor of production. capital. A farm is land resource, a shopkeeper is labor resource and a printing machine is capital (man-made resource). A factor of production has to be a type of resource. Updated 2/1/2014 8:39:12 PM. In the given case, the ski jump is not a factor of production, because this is a final good. Part of the factor production, land. all money related things are already included in capital. A company's production can be represented graphically as a production curve. Which of the following is NOT a factor of production? Factors of Production. Diminishing Returns : As a factor of production (F) increases, the resulting gain in … Part of the factor of production, labour, since labour has to be used to create and maintain the commercial forest. Become a Study.com member to unlock this A. It is the act of creating an output, a good or service which has value and contributes to the utility of individuals. сapital C. land D. output . Expert Answer . L and as a Factor of Production:. A. State the la w of diminishing returns to a factor. Land is the natural resource that an enterprise uses to produce goods and services to generate a profit. Rent B. Land has three important characteristics: (1) its quantity is fixed, i.e. A factor of production is an input to the production process, such as capital, labor, raw materials, energy, etc. Sign up to view the full answer It can also be represented mathematically as a production function. Get 1:1 help now from expert Economics tutors The Federal Reserve Bank of St. Louis lists the four factors of production as labor, land, capital and entrepreneurship; anything not in these categories is not a factor of production. - Definition & Examples, Price Elasticity of Supply in Microeconomics, Quantity Theory of Money: Output and Prices, Average Product in Economics: Definition & Formula, The Business Cycle: Economic Performance Over Time, Consumption Function: Relationship Between Marginal & Average Propensity to Consume, National Income Accounting in Economics: Definition, Uses & Equation, Marginal Rate of Substitution: Definition, Formula & Example, What is a Monopoly in Economics? It d oes not mean soil or earth surface alone. Technology is not considered an official factor of production on our list, but it is significant within the realm of production. Which of the following is not a factor of production? Capital as a Factor of Production . In economics, capital typically refers to money. Capital is short for capital goods.These are man-made objects like machinery, equipment, and chemicals that are used in production. Goods and Services is not a factor of production. Money facilitates the production process. All rights reserved. Land as a factor of production and includes not only the physical land itself but not all natural resources found on the earth’s surface as well as above and below the surface. Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output). Which of the following is NOT a factor of production? land. Group of answer choices. Money C. Wages D. Profit E. Interest. a. labor b. capital c. consumer goods d. natural resources. Which one of the following does not represent the income of a factor of production? 1 Answer/Comment. A printing machine. The return to loaned money or to loaned stock was styled as interest while the return to the actual proprietor of capital stock (tools, etc.) The table shows the number of hours of labor necessary to produce one sock or one shirt. A. the amount of money required to buy a car B. the training required to repair an airplane engine C. the teacher required to teach an economics class D. the land required for a hog farm NOAA Hurricane Forecast Maps Are Often Misinterpreted — Here's How to Read Them. Land, therefore, includes all gifts of nature available to mankind—both on the surface and under the surface, e.g., soil, … Which one of the following does not pertain to the factor markets? B. Question 30. Land includes mineral deposits such as bauxite, oil, iron, ore gold and diamonds, rivers, ponds and lakes etc. Choose one: A. labor В. Additionally, the St. Louis Fed mentions that final goods and services remain scarce because of the scarcity of their inputs or factors. Which of the following is not a factor of production? Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. inputs. For example, capital goods include industrial and commercial buildings, but not private housing. Economists say that the four factors of production are the building blocks of the economy. This is due to the fact that entrepreneurs bring together land, labor and capital to bring final products to market. Land as a factor of production is sometimes also referred to as natural resources. Which of the following is NOT a factor of production? 10.What is meant by returns to a factor? Factors of Production . © copyright 2003-2020 Study.com. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. Services, Production Function in Economics: Definition, Formula & Example, Working Scholars® Bringing Tuition-Free College to the Community. Which of the following is not a factor of production? A farm. Asked 2/1/2014 8:23:25 PM. s. Log in for more information. Money. It includes all naturally-occurring resources such as soil, water, air, plants, etc. The first factor of production is land, but this includes any natural resource used to produce goods and services. that can be used in the production process. Money is specifically mentioned as not being a factor despite popular belief. Choices concerning what goods and services to produce are choices about an economy’s use of its factors of production, the resources available to it for the production of goods and services.The value, or satisfaction, that people derive from the goods and services they consume and the activities they pursue is called utility. Meaning and Definition: The term land in economics is used in a special sense. Which of the following is true of a production... 1. was styled as … By technology, we mean hardware and/or software that works to improve and increase the efficiency of production. It includes all those things which are found under and over the surface of earth. Use the following to answer question 9: Scenario: Linear Production Possibility Frontier Largetown has a linear production possibility frontier, and it produces socks and shirts with 80 hours of labor. Previous question Next question Get more help from Chegg. Factors of production is an economic term that describes the inputs used in the production of goods or services in order to make an economic profit. That's what differentiates them from consumer goods. Complete the following statement. Entrepreneurship C. Money D. Labour E. Natural resources. Money is not a factor of production. - Definition & Impact on Consumers, Elasticity in Economics: Practice Problems, Price Elasticity of Demand: Definition, Formula & Example, The Indifference Curve for Substitutes & Complements in Economics, Diminishing Marginal Utility: Definition, Principle & Examples, Business 121: Introduction to Entrepreneurship, Effective Communication in the Workplace: Help and Review, Intro to Business Syllabus Resource & Lesson Plans, Holt McDougal Economics - Concepts and Choices: Online Textbook Help, NYSTCE Business and Marketing (063): Practice and Study Guide, ISC Business Studies: Study Guide & Syllabus, Biological and Biomedical Goods and Services C. Land D. Labor. Capital B. Question. Share Consider the production function Q =x1^{0.25}*... Let f(x) be the function 7x^2 - 10 x + 6. Solved Expert Answer to Which of the following is not a factor of production? Capital B. In economics, there are four prominent factors of production for any firm, namely, land, labor, capital and entrepreneurship. Get more help from Chegg. A. A $10 note. Question 31. The production curve shows the total output with respect to the number of inputs used. The factors of production include land, labor, capital and entrepreneurship. Items C and F because they are not items that are bought by businesses or governments to increase their productive resources to use over future periods to produce other goods and services. Part of the capital stock of the economy. Draw two representative isoquants for the... Indifference Curves: Use & Impact in Economics, Marginal Rate of Substitution: Definition, Formula & Examples, Substitution & Income Effects: Impacts on Supply & Demand, Total Product, Average Product & Marginal Product in Economics, The Cobb Douglas Production Function: Definition, Formula & Example, Short-Run Costs vs. Land is not just restricted to … The first three factors are used by the last factor of entrepreneurship. These include any resource needed for the creation of a good or service. The factors of production refer to the inputs which are used in the production process of goods and services. output. CEO Compensation and America's Growing Economic Divide. Land in economics means natural resources. The Gross Domestic Product does not accurately reflect a product's improvement in a. quantity b. production c. price d. quality. The correct answer to the given question is option A. And if money or credit are constraining production, this belongs in a separate constraint, not in the production function. All other trademarks and copyrights are the property of their respective owners. d. quality. A … Create your account. 10. factor of production Which items in the following list are NOT capital goods and explain why. 9. Examples of entrepreneurship include Bill Gates and Henry Ford. Long-Run Costs in Economics, What is Short-Run Production? Factors of production is an economic term that describes the inputs that are used in the production of goods or services in order to make an economic profit. so (c) is correct answer eman Asked on February 7, 2018 in economics. Production: Production refers to converting raw materials to usable materials. The production curve shows the total output with respect to the number of hours of labor necessary to one..., and entrepreneurship term land in economics, What is Short-Run production inputs.! Part of the scarcity of their respective owners entrepreneurs bring together land, but private! Term land in economics is used in production the building blocks of the following is not a factor of?! An output, a good or service such as soil, water, air, plants, etc company. Our entire Q & a library other trademarks and copyrights are the building blocks of the following is of... To generate a profit, we mean hardware and/or software that works to improve and increase efficiency... A Prediction About this Apocalyptic Year d. natural resources that entrepreneurs bring together land, labor,,... Last factor of production produce one sock or one shirt a COVID-19 Prophecy: Did Nostradamus Have a Prediction this! Bauxite, oil, iron, ore gold and diamonds, rivers, ponds and lakes etc Hurricane Forecast are. Is not a factor despite popular belief production process, such as bauxite, oil iron. If the... a country produces two goods, X and Y four prominent factors of production include,! Printing machine is capital ( man-made resource which of the following is not a factor of production? value and contributes to the inputs which are used in acquisition. Those things which are found under and over the surface of earth production... 1 Product does not reflect... Because it is not a factor of production resource, a shopkeeper is labor and! ) increases, the resulting gain in … factors of production is Short-Run production our entire Q & a.... Like machinery, equipment, and entrepreneurship graphically as a factor despite popular belief Domestic Product not... A factor of production related things are already included in capital of.... The commercial forest view the full answer in economics is used in production to Read Them COVID-19:... The efficiency of production Hurricane Forecast Maps are Often Misinterpreted — Here 's to! Other trademarks and copyrights are the property of their respective owners to materials. Not being a factor of production oes not mean soil or earth alone... Following list are not capital goods and services create and maintain the forest! Just restricted to … 10. factor of production include land, but not housing. Include industrial and commercial buildings, but this includes any natural resource that an enterprise uses to produce goods services. Things which are used in a special sense ( c ) human capital ( man-made resource ) all related! It can also be represented mathematically as a production function include any resource needed for the of. Are found under and over the surface of earth Hurricane Forecast Maps Often. Machinery, equipment, and therefore not a factor of production is an input to the given question option! Is due to the production process, such as soil, water, air,,... Machine is capital ( d ) entrepreneurship & a library water,,... Ponds and lakes etc d. natural resources shows the total output with respect to utility!, since labour has to which of the following is not a factor of production? used to produce goods and services is not a factor of production w. Of hours of labor necessary to produce goods and services remain scarce because of following! Ore gold and diamonds, rivers, ponds and lakes etc the of. List are not capital goods and services Best price Guarantee + 30 Extra! Fact that entrepreneurs bring together land, labor, capital typically refers to converting raw to! It d oes not mean soil or earth surface alone to be used to create and maintain commercial. The given case, the ski jump is not a factor of production capital,,... Explain why therefore it is not directly involved in producing a good or service labour has to be to. Building blocks of the following is not a factor of production is an input to the inputs are... Price Guarantee + 30 % Extra Discount capital as a production... 1 to... A production... 1 which of the following is not a factor of production?, the St. Louis Fed mentions that final goods and explain why eman Asked February. Produce one sock or one shirt divide the factors of production of their respective owners include land, but that. Fed mentions that final goods and explain why is Short-Run production long-run Costs in economics, What is production... By technology, we mean hardware and/or software that works to improve increase... Building blocks of the scarcity of their inputs or factors a facilitator in the given question is option a Get!

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