Which is considered a factor of production?Multiple Choicemoney in a checking accounta firm's common stockS.A savings bondsan auto plant
Question
Which is considered a factor of production?
- money in a checking account
- a firm's common stock
- a savings bond
- an auto plant
Solution
To determine which option is considered a factor of production, we need to review what factors of production are. Factors of production are resources used to produce goods and services, typically categorized into four groups: land, labor, capital, and entrepreneurship.
- Money in a checking account: This represents financial capital, but it is not a direct factor of production itself.
- A firm's common stock: This is an investment in the company but does not directly contribute to production.
- Savings bonds: These are financial instruments and not factors of production.
- An auto plant: This represents physical capital, which is a direct factor of production as it is used to manufacture goods.
Final Answer
The option that is considered a factor of production is an auto plant.
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