Question

Entrepreneur and labour are human factors of production with a difference. Explain.​

Answer 1

Look around yourself. What will you see? Tables, chairs, other furniture, doors, television, wardrobe, and so many other manmade things. Does it ever come to your mind how are these things made? How is the iron chair made? How is the wooden table made? You know that wooden furniture is made up of wood. How can one get wood? Of course from trees. The iron chair was first a piece of iron. But how is that chair gets its shape? These woods and iron are some factors of production. These are the raw materials which finished themselves into final goods like chairs and tables. In this section, we are going to know the factors of production.