Economics 9708 · AS & A Level · Factors of production

Factors of production — practice question

A UK-based food company plans to broaden its product range. To fund this, it has secured a $10m loan from a bank to purchase land, construct and equip a bakery. Which of the following would not be regarded by an economist as a factor of production?

  • Athe $10m loan used to finance the project
  • Bthe land on which the bakery will be built
  • Cthe ovens required to bake the bread
  • Dthe soya used in the making of the bread

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