34
practice examMultiple Choice

Practice Exam

Question 34 • Economics

In the circular flow model, factors of production flow to firms. Which are the primary factors of production? Choose three correct answers.

Answer
A
services
B
capital
C
land
D
labor
E
goods

Explanation

The primary factors of production are land, labor, and capital. Land includes natural resources, labor is human work, and capital includes tools and equipment used to produce goods and services. Services and goods are outputs, not factors of production.

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