Which term refers to the physical and mental capabilities of individuals used in production?

The term that refers to the physical and mental capabilities of individuals used in production is "Labor or Human Resources." This concept encompasses the workforce's skills, knowledge, and abilities, which contribute to the creation of goods and services in an economy. Labor is a crucial factor of production, alongside land and capital, as it represents the human input needed for the production process.

In economic terms, labor is not only about the number of workers available but also their qualifications and the variety of skills they possess. It is an essential component because productivity often relies on how effectively human resources are utilized in various industries. A well-trained workforce can significantly enhance an organization’s efficiency and, consequently, its output. The interplay of labor with the other factors of production determines an economy's overall productivity and growth potential.

While other options, such as land and capital resources, are also significant in the production process, they refer to different inputs. Land pertains to natural resources, while capital resources relate to man-made assets used in production. "Factors of Production" is a broader term that encompasses all inputs (land, labor, capital) but does not specifically highlight the human aspect, which is the focus of the correct choice.