The plow a farmer uses to plant crops is an example of which factor of production?
(A) capital
(B) labor
(C) land
(D) services
From Internet:
Capital is wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.
labor
The plow a farmer uses to plant crops is an example of factor of production (A) capital.
To find the answer to this question, we need to understand the different factors of production. The factors of production are the resources that are used in the process of producing goods and services. There are four main factors of production: capital, labor, land, and entrepreneurship.
Capital refers to the man-made resources that are used in the production process, such as machinery, tools, and equipment. Labor refers to the human effort, both physical and mental, that is used in the production process. Land refers to the natural resources that are used in the production process, such as land itself, water, minerals, and other raw materials. Lastly, entrepreneurship refers to the combination of creative, innovative, and managerial skills that are used in the production process.
In the given scenario, the plow that a farmer uses to plant crops can be categorized as a capital resource. The plow is a man-made tool or equipment that aids in the production of crops. Therefore, the correct answer is (A) capital.
To arrive at this answer, you could analyze the function of a plow in the process of planting crops and identify it as a capital resource. Alternatively, you could rely on your prior knowledge or understanding of the different factors of production and their definitions to determine that the plow is an example of capital.