Which of the following is considered a natural resource?

Study Economics and Personal Finance Exam. Use flashcards and multiple choice questions with hints and explanations. Prepare confidently for your test!

Water is classified as a natural resource because it is a naturally occurring substance found in the environment that is essential for life, ecosystems, and various human activities. Natural resources like water are part of the Earth's natural environments and do not require human intervention or manufacturing processes to be produced.

In contrast, factories, labor, and machines are all human-made or human-influenced. Factories and machines are physical structures and tools created by humans to facilitate production and manufacturing, while labor refers to the human effort used in the production of goods and services. These elements are considered factors of production but do not fall under the category of natural resources, which specifically refers to resources that are naturally occurring in the environment.

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