Which of the Following Is a Factor of Production

question 112

Multiple Choice

Which of the following is a factor of production?

• A)a sofa produced by a furniture manufacturer
• B)20 shares of Microsoft stock
• C)the janitor at the local elementary school
• D)$500 in cash

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Definitions:

Consuming

The act of using up goods and services to satisfy wants or needs.

Maximizing Utility

The process of choosing the allocation of scarce resources that provides the highest possible satisfaction or happiness to an individual or society.

Marginal Utility

The change in overall satisfaction or utility obtained by consuming one additional unit of a good or service.

Total Utility

The total satisfaction received from consuming a particular quantity of goods and services.