Which of the Following Is Not a Factor of Production?
Follow Us:
Twitter
The Federal Reserve Bank of St. Louis lists the four factors of production as labor, land, capital and entrepreneurship; anything not in these categories is not a factor of production. Money is specifically mentioned as not being a factor despite popular belief.
Economists say that the four factors of production are the building blocks of the economy. The first three factors are used by the last factor of entrepreneurship. This is due to the fact that entrepreneurs bring together land, labor and capital to bring final products to market. Examples of entrepreneurship include Bill Gates and Henry Ford. Additionally, the St. Louis Fed mentions that final goods and services remain scarce because of the scarcity of their inputs or factors.
