Question

All of the following are what type of production factor? water, vegetation, oil, and air

a. land
b. human capital
c. physical capital
d. labor

European countries such as France and Sweden operate under which form of mixed economy?
a. authoritarian socialism
b. capitalism
c. democratic socialism
d. traditionalism

Answer 1

1. The answer is: Land
Land factor of production includes all form of natural resources that play a certain role in company's operation.
Answer B and D are wrong because they're basically the same and option C is wrong because physical capital only includes things that could be see and felt.

2. The answer is: C. democratic socialism
Democratic socialism is operated with the combination of both capitalism and socialism.
In democratic socialism, the economy is still operates based on free market system, but the government plays a larger role in welfare distribution by creating higher income taxation.