Question

At the process level, it is much easier to distinguish whether the process is providing a service or manufacturing a product.

a) True
b) False

Answer 1

In the pizza-making process, the inputs or factors of production are the raw materials (flour, water, yeast, tomatoes, spices, cheese), labor from the pizza maker, and capital like the oven and tools used.

Step-by-step explanation:

In the production process of making a pizza, the inputs or factors of production include various materials and resources that are used to create the finished product – the pizza. The primary inputs in this process are:

• Raw materials: flour, water, yeast, tomatoes, spices, and cheese
• Labor: the work done by the pizzaiolo or pizza maker
• Capital: the oven, peel (wooden tool), and other equipment used in the pizza-making process

These inputs can be further categorized into different types of economic resources, namely, natural resources, human resources, and capital resources. In the case of pizza making, the dough, sauce, and toppings represent the transformed state of the raw materials through the labor and capital employed in the process.