Money is the scarce factor of production
Scarce factors of production refers to resources needed for production but exist in limited supply
- Let understand that the Main factors of Production includes 4 part and they are Land, Labor, Capital and Entrepreneur.
- However, there are other factors which are needed for production and they includes such as time, money, tools, raw materials etc.
In conclusion, Money in this question context is the scarce factor because it is very limited in supply. Industry with low money need to borrow money from banks or similar institution to finance their business.
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