Which factor of production involves the mental and physical contributions of the workforce?

Labour is the factor of production that pertains to the mental and physical contributions of the workforce. It encompasses all human efforts, both physical and intellectual, that are necessary to produce goods and services. This includes the work done by employees, whether in manufacturing, services, or any other sector of the economy.

The importance of labour in production is multifaceted; it involves not only the ability to perform tasks but also the skills, knowledge, and creativity that workers bring to the production process. This factor is essential for transforming raw materials (which are associated with land) into finished products and completing services, making it a crucial component of economic activity.

While land represents natural resources, capital includes the tools and machinery used in production, and entrepreneurship refers to the ability to combine all factors of production and take risks to innovate, none of these options capture the essence of the human contribution in the way that labour does. Consequently, it is evident that labour is the correct answer in this context.