All physical and mental activity devoted to producing goods and services is classified under the resource category called ___________.

The correct classification for all physical and mental activity devoted to producing goods and services is labor. Labor encompasses all forms of human effort, whether physical work or mental exertion, that contribute to the creation of products and services in the economy. This includes a wide range of activities, from manual labor in manufacturing to intellectual contributions in services or research and development.

In the context of economics, labor is considered one of the key factors of production, alongside land, capital, and entrepreneurship. Each of these factors contributes in different ways to the production process, but it is labor that specifically refers to the human element involved in producing output. This definition clearly aligns with the concept of labor as it relates to human effort and skills applied in various sectors of the economy.