Identifying factors of production in economics

Steps:

• Recall the four factors of production: land (natural resources), labor, capital (physical tools and equipment), and entrepreneurship.
• Evaluate option A: £10m loan is financial resources, used to buy factors but not a factor itself.
• Evaluate option B: Land is a natural resource directly used in production.
• Evaluate option C: Ovens are physical capital goods essential for baking.
• Eliminate option D: Soy is a raw material input, derived from land but not a basic factor.

Why B and C are correct:

• Land fits the "land" factor as natural resources; ovens fit the "capital" factor as man-made tools for production, per standard economic classification.

Why the others are wrong:

• A: Money (£10m) is not a factor; it's a medium of exchange, not directly productive (classical economics definition).
• D: Soy is an intermediate consumption good, not a primary factor like land or capital.

Final answer: B and C