Question

A factor of production is the same as:

1. the price of a good

2. the amount of a good produced

3. a resource.

4. an opportunity cost

5. a profit for a firm

Answer 1

A factor of production is the same as: Answer will be

3. A resource. Factors of production are the economic resources used in the production process. The various factors of production or resources are land, labor, capital and entrepreneur.

The answer cannot be price because price is the aggregation of cost and profit. It cannot be amount of good purchased. Opportunity cost is the cost of the next best alternative. It cannot be profit because profit is the difference between sales and cost.

Hence the correct answer should be RESOURCE