As per the economic scholars, __________ was excluded from the definition of factor of production.
Last updated Jun 24, 2026
Correct Answer:
Option B —
money
Why Money is Excluded
Economic scholars distinguish between Financial Capital (money) and Physical Capital (machinery/tools).
Not a Productive Resource: Money does not directly produce a good or service. You cannot use a 100-rupee note to stitch a shirt or harvest a crop. It is merely a medium of exchange used to acquire the actual factors of production.
The "Capital" Distinction: In economics, the term "Capital" refers specifically to man-made goods used in the production process (like a tractor or a computer). Money is often called "Capital" in common language, but in formal economics, it is excluded because it is a claim on resources, not a resource itself.
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