Question 7
Theory of ProductionLand is a factor of production because it
- A.is a free gift of nature
- B.contains valuable mineral resources
- C.assists in the creation of utility
- D.is owned by individuals and governments.
Show the answer and explanation
Answer: C (assists in the creation of utility)
Explanation
Anything is a factor of production because it helps produce goods and services (creates utility); land does this.