Question

The new employee that Dunn Photographic Services hired is an example of which factor of production?

1) natural resources
2) capital
3) wages
4) interest
5) labor

Answer 1

Labor represents the human effort and skills that are employed to produce goods and services. In this case, the new employee will be utilizing their expertise and knowledge to create photographic services for Dunn Photographic Services. so, the correct answer is 5) labor.

Step-by-step explanation:

The new employee hired by Dunn Photographic Services is an example of the factor of production known as 5) Labor. In the context of economic production, labor refers to the human effort, skills, and time that individuals contribute to the production of goods and services. Hiring a new employee involves utilizing human labor as a crucial input in the production process.

The other factors of production mentioned are:

Natural resources (e.g., raw materials, land.)

Capital (e.g., machinery, tools, buildings.)

Wages (Wages are a form of compensation paid for labor services.)

Interest (Interest is typically associated with the return on capital or financial investments.)

Therefore, the right option is 5) labor.