Correctly Identifying Factors of Production

Steps:

• Recall the four factors: land (natural resources), labor (human effort), capital (man-made aids), enterprise (risk-taking).
• Match each option to standard economic definitions.
• Eliminate incorrect statements based on mismatches.
• Confirm the accurate description.

Why D is correct:

• Land, per economic definition, includes all natural resources like soil, minerals, forests (trees), and marine life (fish) provided by nature without human intervention.

Why the others are wrong:

• A: Capital means physical tools and machinery, not financial resources like bank savings.
• B: Enterprise refers to entrepreneurs' innovation and risk, not office workers (who are labor); supply of enterprise is scarce, but the description is wrong.
• C: Labor involves productive human effort from the working-age population, excluding children and pensioners who typically do not contribute.

Final answer: D