Question

Mary decides to produce and sell apple juice. She leases an apple orchard and renovates her kitchen to produce and bottle the apple juice. Mary hires three employees. Two employees will maintain the apple orchard and bottle the juice, and one will market the apple juice using the Internet.In the manufacture and sale of the apple juice, what factor of production does Mary represent? A. land

B. labor
C. capital
D. entrepreneurship

Answer 1

Answer: D - entrepreneurship

Explanation: there are 4 factors of production:

1. Land- it refers to all the natural resources used in the production process.

2. Capital- they are also known as capital goods. They are man's creations used in the production process.

3. Labour- it is the work done by humans in the production process

4. Entrepreneurship- it is the individual who had the idea for the business.

In the above question, Mary is the entrepreneur. The employees are labour. The orchid and kitchen is the land.