Natural resources used to make a good or service

Natural resources used to make a good or service

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

Answer: (A)

Natural resources used to make a good or service are described by the factor of production that comes from nature. This is land. Land covers the natural resources available for production—things like soil, minerals, forests, water, and the land itself. These resources aren’t created by people but are used in making goods and services. Labour is human effort, capital includes tools, equipment, and factories, and goods are the final outputs. So land is the correct choice because it specifically refers to the natural resources used in production.

Natural resources used to make a good or service are described by the factor of production that comes from nature. This is land. Land covers the natural resources available for production—things like soil, minerals, forests, water, and the land itself. These resources aren’t created by people but are used in making goods and services. Labour is human effort, capital includes tools, equipment, and factories, and goods are the final outputs. So land is the correct choice because it specifically refers to the natural resources used in production.