30. The function of combining the other
factors of production is done by
Answers
Answer:
Concept:
In economics, factors of production are the resources that people use to produce goods and services; they are the building blocks of the economy. Economists divide the factors of production into four categories: land, labor, capital, and business.
Explanation:
Factors of production are resources that are the building blocks of an economy; they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and business.
The first factor of production is land, but it includes any natural resource used to produce goods and services. This includes not only the land, but everything that comes from it. Some common land or natural resources are water, oil, copper, natural gas, coal, and forests. The raw material in the production process is soil resources.
The second production factor is labor. Labor is the effort that people contribute to the production of goods and services. Job resources include the work done by the waiter who brings you food at the local restaurant, as well as the engineer who designed the bus that takes you to school.
The third factor of production is capital. Think of capital as the machines, tools, and buildings that people use to produce goods and services. Some common examples of capital include hammers, forklifts, conveyor belts, computers, and vans. Capital varies according to the worker and the type of work performed.
The fourth factor of production is entrepreneurship. An entrepreneur is a person who combines the other factors of production - land, labor and capital - to make a profit.
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