Which term represents land, a natural resource used in production?

Which term represents land, a natural resource used in production?

• A. Labour
• B. Capital
• C. Land
• D. Enterprise

Answer: (C)

Land is used to denote natural resources that come from the Earth and are used in making goods and services. In simple economics, the factors of production are land, labour, and capital (with enterprise sometimes added as a fourth). Land covers natural resources such as soil for crops, forests for timber, minerals, water, and energy sources. It differs from labour, which is human effort, and from capital, which consists of man-made tools, equipment, and financial resources used in production. Because land is a natural resource that is not produced by people and is finite, its earnings are often described as rent. So the term that represents land, a natural resource used in production, is land.

Land is used to denote natural resources that come from the Earth and are used in making goods and services. In simple economics, the factors of production are land, labour, and capital (with enterprise sometimes added as a fourth). Land covers natural resources such as soil for crops, forests for timber, minerals, water, and energy sources. It differs from labour, which is human effort, and from capital, which consists of man-made tools, equipment, and financial resources used in production. Because land is a natural resource that is not produced by people and is finite, its earnings are often described as rent. So the term that represents land, a natural resource used in production, is land.