Question
Which factor of production involves taking risks and combining resources to produce a good or service? Land Labor Entrepreneurs Capital
Answer
4.1
(190 Votes)
Xanthe
Master · Tutor for 5 years
Answer
C. Entrepreneurs
Explanation
Factors of production are the inputs needed for the creation of a good or service. The main factors of production include land, labor, capital, and entrepreneurship. Each factor has a distinct role in the production process:- Land refers to natural resources that are used to make goods and services.- Labor is the effort that people contribute to the production of goods and services.- Capital is the machinery, tools, and buildings humans use to produce goods and services.- Entrepreneurs are individuals who take the initiative to bring the other factors of production together, take on the risks of starting and managing a business, and innovate to create new products or improve processes.In this context, the question is asking which factor involves the act of taking risks and combining other resources to produce goods or services. The role of an entrepreneur is to organize the other factors of production and to take on the risks associated with starting and running a business. Entrepreneurs are the ones who seek out new opportunities, develop new products, and create new businesses, which inherently involves risk-taking.Land, labor, and capital are resources that entrepreneurs combine in various ways to create goods or services, but they do not inherently involve risk-taking or the combination of resources; that is the role of the entrepreneur.