Which of the Following Is Not a Factor of Production

question 182

Multiple Choice

Which of the following is not a factor of production?

• A)the water used to cool a nuclear power plant
• B)the effort of farmers raising cattle
• C)the wages paid to workers
• D)the management skill of a small business owner
• E)the land used by a farmer to grow wheat

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Definitions:

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Incremental Revenues

Additional revenue generated from a specific action or decision, comparing the difference in total revenue with and without the action.

Incremental Revenues

Additional income generated from a particular business decision or activity, beyond the existing baseline revenue.

Unavoidable Cost

A cost that cannot be eliminated and must be incurred regardless of the action taken.