8. Write four factors of production?
Answers
Answer:
Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. The first factor of production is land, but this includes any natural resource used to produce goods and services .
Explanation:
Economists divide the factors of production into four categories
: land,
labor,
capital,
and
entrepreneurship
. The first factor of production is land, but this includes any natural resource used to produce goods and services.
explanation
1)Land
It refers to all natural resources. All natural resources either on the surface of the earth or below the surface of the earth or above the surface of the earth is Land.
One uses the land to produces goods. It is the primary and natural factor of production. All gifts of nature such as rivers, oceans, land, climate, mountains, mines, forests etc. are land.
2)Labor
All human effort that assists in production is labour. This effort can be mental or physical. It is a human factor of production. It is the worker who applies their efforts, abilities, and skills to produce
3)Capital
Capital refers to all manmade resources used in the production process. It is a produced factor of production. It includes factories, machinery, tools, equipment, raw materials, wealth etc.
4)Entrepreneur
An entrepreneur is a person who brings other factors of production in one place. He uses them for the production process. He is the person who decides
What to produce
Where to produce
How to produce
A person who takes these decisions along with the associated risk is an entrepreneur
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