Question

Approximately 200 people are working on developing a new community just outside a major city. Unlike other communities in the area, the development will feature innovative amenities such as solar powered houses, bike paths, and small, locally owned stores. The decision to include these amenities is an example of which factor of production?

capital
entrepreneurship
labor
land

Answer 1

Answer is entrepreneurship

Entrepreneurship combines land, labor, and capital in new and innovative ways in order to make an economy more productive and successful. In this case, the creative new amenities of the town reflect an element of entrepreneurship.