What describes the means through which goods and services are produced?

• A. Capital
• B. Economic resources
• C. Labor
• D. Land

Answer: (B)

The means through which goods and services are produced are economic resources, also called the factors of production. This umbrella term covers all inputs used in making goods and services. It includes land (natural resources), labor (human effort), and capital (tools, machinery, buildings). Because the question asks for the overall means of production, the broad term economic resources fits best, since capital or labor or land alone describe only one part of the production process. For example, a bakery relies on land (space), labor (bakers), and capital (ovens and mixers) to produce goods.