Question

which statements correctly identify limitations of the factors of production? choose three correct answers. an economy can function well when producing outside its limitations. land is a factor of production that is limited only by the amount available. capital includes all money and physical facilities needed to create a product. economies must consider their limitations when answering the three questions of economics. labor is a factor driven by the size of the population, education, and standard of living.

Explanation:

1. Analyze "Land is a factor of production that is limited only by the amount available." - Land as a factor of production has a limited quantity available, so this correctly identifies a limitation.
2. Analyze "Economies must consider their limitations when answering the three questions of economics." - Economies have to account for the limited nature of factors of production (land, labor, capital) when making economic decisions (the three economic questions), so this is correct.
3. Analyze "Labor is a factor driven by the size of the population, education, and standard of living." - Labor availability is limited by factors like population size (how many workers), education (quality of labor), and standard of living (which can affect labor supply), so this identifies a limitation of labor as a factor of production.

The other options: "An economy can function well when producing outside its limitations" is incorrect (economies can't produce outside their factor limitations) and "Capital includes all money and physical facilities needed to create a product" is a definition of capital, not a limitation.

Answer:

• Land is a factor of production that is limited only by the amount available.
• Economies must consider their limitations when answering the three questions of economics.
• Labor is a factor driven by the size of the population, education, and standard of living.