A Level Economics AQA Practice Exam

Which of the following is NOT considered one of the factors of production?

1. Land

2. Labour

3. Capital

4. Profit

The correct answer is: Profit

The answer is profit, as it is not classified as a factor of production. In economics, the factors of production refer to the resources used to produce goods and services and typically include land, labor, and capital. Land encompasses natural resources and raw materials that are used in the production process. Labor refers to the human effort, skills, and time contributed to the production of goods and services. Capital denotes the machinery, tools, and buildings used to facilitate production. Profit, on the other hand, is the financial gain that remains after all costs of production have been subtracted from total revenue. It is the outcome of the production process rather than a resource employed in the process itself. Thus, profit is categorized as a return for managing the production process and is not a factor contributing to the production of goods and services.