A Stand of Redwood Trees Is Not an Example of a Factor

question 321

True/False

A stand of redwood trees is not an example of a factor of production but the harvested and processed redwood is a factor of production.

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Definitions:

Good

A material item or service that fulfills wants or needs, often exchanged in economic transactions.

Equilibrium Price

The market price at which the quantity of a good or service demanded equals the quantity supplied.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price in a market.

Market

An economic system or environment where buyers and sellers interact to exchange goods and services for money or barter.