The Key Distinction Between a Factor of Production and an Input

question 262

Multiple Choice

The key distinction between a factor of production and an input is that:

• A)an input is an enduring source of income,but a factor of production is used up in production.
• B)a factor of production earns income from selling its services over and over again,but an input does not.
• C)an input earns income from selling its services over and over again,but a factor of production does not.
• D)a factor of production has limited earning potential.

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Definitions:

Purchase Order

A business document and initial formal proposal provided by a purchaser to a vendor, specifying the kinds, amounts, and settled prices for goods or services.

Purchase Requisition

An official request form used within organizations to propose the purchase of specific goods or services.

Purchase Demand

The quantity of goods or services that consumers are willing and able to buy at a given price within a specific time period.

Perpetual Inventory System

An accounting approach that continuously updates inventory records after each transaction, providing a real-time view of inventory levels.