Question

1. Ray Kroc, the American entrepreneur for expanding the McDonald's

franchise would purchase real estate or empty lots before building the
actual restaurant. What economic factor of production does the real estate
describe?

Answer 1

Answer: Land

Step-by-step explanation:

Economic factors of production are needed in the production process to turn raw goods to finished goods. There are four factors of production being; Land, Labor, Capital, and Entrepreneurship.

The relevant factor here is land. Land involves every natural resource that goes into the production process including as the term suggests, the land (real estate).

The real estate that Ray Kroc acquires before building the restaurant falls under Land as a factor of production.