Praxis 5004 Practice Test Practice Question
Which of the following factors of production best describes goods used to produce other goods?
Correct Answer: A
Rationale: Capital refers to the tools, machinery, and buildings used in the production of goods and services, making it essential for creating other goods. It encompasses physical assets that enhance productivity.
Labor involves human effort and skills applied in the production process, but it does not refer to goods themselves.
Land denotes natural resources utilized in production, such as minerals or agricultural land, but it is not a manufactured good.
Entrepreneurship represents the initiative and risk-taking required to combine the other factors, but it does not involve physical goods used in production.
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