Future Business Leader Achievments (FBLA) Economics Practice Exam

Which of the following factors is typically NOT considered a factor of production?

1. Land

2. Labor

3. Technology

4. Monopoly

The correct answer is: Monopoly

In economics, the factors of production are resources that are used to produce goods and services. These usually include land, labor, and capital. Land refers to natural resources available for production, while labor signifies the human effort that is used in the creation of goods and services. Technology, while sometimes debated in its classification, is typically considered a form of capital as it increases the efficiency of production processes. A monopoly, however, is not a factor of production. Instead, it constitutes a market structure where a single seller dominates the market for a particular good or service, limiting competition. Thus, it relates to how markets operate rather than the resources used to produce goods and services. This clarity in definitions shows why monopoly stands apart from the traditional factors of production.