Question

1 How are the production inputs classified? choose the best answer



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Answer 1

Explanation:

The inputs to the production function are classified as fixed and variable. ... The former are called variable inputs and later, the fixed inputs. The labour and raw material are examples of variable input whereas buildings, major capital equipment are examples of fixed input.

Answer 2

Production inputs also known as factors of production are classified as :

• land
• labour
• capital
• entrepreneurship

1. Land: It comprises of all natural resources that are extracted from land as well as the land in the physical form.
2. Labor: it comprises of labor hours invested by the workers in a firm.
3. Capital: It comprises of all the machinery and tools used for the production process. It also comprises of assets of business.
4. Entrepreneurship: It is an activity of bringing together all the factors of production in order to make business a profitable activity.

The factors of production can be variable as well as fixed. But, in long run all the inputs are variable.