Factors of Production Are Grouped into Four Categories

question 270

Multiple Choice

Factors of production are grouped into four categories

• A) land, labor, capital, entrepreneurship.
• B) land, labor, capital, money.
• C) land, capital, money, entrepreneurship.
• D) labor, capital, money, entrepreneurship.

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Definitions:

Market Price

The current price at which a good or service can be bought or sold in the open market.

Costs Of Production

The total expenses incurred in producing goods or services, including raw materials, labor, and overheads.

Willingness To Sell

The minimum price at which a person or entity is prepared to sell a good or service, reflecting the value at which they are ready to part with it.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive, indicating the benefit to producers.