5
practice testMultiple Choice

Practice Test

Question 5 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

What are the factors of production in business?

Answer
A
land, labor, and capital
B
capital, customer base, and interest
C
land, capital, and interest
D
land, labor, and customer base

Explanation

The traditional factors of production are land, labor, and capital. Land includes natural resources, labor is the work people do, and capital includes tools, equipment, and other resources used to produce goods or services. Therefore, the correct choice is “land, labor, and capital.”

AI-written and checked against the verified answer.

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