Capital as a Factor of Production

Steps:

• Identify the four factors of production: land, labour, capital, and enterprise.
• Define each: land is natural resources, labour is human effort, capital is man-made aids, enterprise is organization and risk.
• Recognize the question asks for the factor that is itself produced to aid further production.
• Match to capital, as it consists of goods like tools and machines created by humans.

Why A is correct:

• In economics, capital is defined as produced means of production, including machinery and buildings used to create more goods and services.

Why the others are wrong:

• B: Enterprise is the entrepreneurial function of organizing factors and bearing risk, not a produced good.
• C: Labour refers to human physical and mental effort, which is not produced but innate.
• D: Land encompasses natural resources like soil and minerals, which exist without human production.

Final answer: A