Moderate

The most important factors of production are ?

Correct answer: A. labor, land, and capital

  • A. labor, land, and capital
  • B. water, earth and knowledge
  • C. money, stocks and bonds.
  • D. management finance and marketing

Explanation

The basic factors of production are land, labour and capital, which provide natural resources, human effort and produced means of production. Management is sometimes treated as an additional factor, but the standard three-factor answer is option a.

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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.

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