Question

Which of the following statements best describes the difference between specific and nonspecific factors of production in economics?

A) Specific Factors: Refers to resources that are limited to a particular industry or use, making them difficult to reallocate. Nonspecific Factors: Refers to resources that can be easily transferred from one industry to another.

B) Specific Factors: Refers to resources that are broadly applicable and can be easily shifted between different industries. Nonspecific Factors: Refers to resources that are unique to a specific industry, making them challenging to redeploy.

C) Specific Factors: Include labor and capital, which are essential for the production process in any industry. Nonspecific Factors: Include raw materials and natural resources that are industry-specific.

D) Specific Factors: Are generic inputs like land and labor, which can be utilized in various sectors. Nonspecific Factors: Are highly specialized inputs designed for a particular industry, making them less versatile.

Answer 1

Specific factors of production include labor and capital, while nonspecific factors include raw materials and natural resources.

Step-by-step explanation:

The best description of the difference between specific and nonspecific factors of production in economics is option C. Specific factors include labor and capital, which are essential for the production process in any industry. Non-specific factors include raw materials and natural resources that are industry-specific.