A mining company in South Africa extracts diamonds from underground deposits. The diamonds in their natural state are best classified as which factor of production?

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Question

A mining company in South Africa extracts diamonds from underground deposits. The diamonds in their natural state are best classified as which factor of production?

Accepted Answer

Land — Award 1 mark for identifying that natural resources, including minerals in their natural state, are classified as land. A is incorrect — capital refers to man-made aids to production. B is incorrect — enterprise involves organising production and taking risks. C is incorrect — labour is human physical and mental effort.

Answer

Land

Answer

Capital

Answer

Enterprise

Answer

Labour

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