Which of the following is a factor of production?

Labor is considered a factor of production because it represents the human effort that is applied in the production of goods and services. In economic terms, factors of production are the resources used to create output, and they typically fall into four categories: land, labor, capital, and entrepreneurship. Labor encompasses the work done by individuals that contributes to the production process, which can include physical work, skill, and even creativity.

In contrast, consumer preferences refer to the desires and tastes of consumers, which influence demand rather than the production itself. Market prices pertain to the value assigned to goods and services in a marketplace, which reflects supply and demand dynamics but does not directly contribute to the production process. Supply chains involve the networks through which goods and services pass from producer to consumer, emphasizing the logistics of distribution rather than the immediate resources used in producing those goods and services.