The Key Distinction Between a Factor of Production and an Input

question 64

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 cannot.
• C) an input earns income from selling its services over and over again, but a factor of production cannot.
• D) a factor of production has limited earning potential.

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Definitions:

Corporate Relocations

The process of a company moving its operations, headquarters, or facilities from one location to another.

Mohair Subsidies

Financial incentives provided by governments to support and encourage the production of mohair, a silk-like fabric or yarn made from the hair of the Angora goat.

Deregulation

The act of eliminating governmental controls and rules in a sector to promote increased competition and efficiency.

Regulation

Rules or directives made and maintained by an authority to control or manage activities, often within industry sectors, for public good.