Question

Explain four factor of prodution in 4m

Answer 1

acording to economics there are 4 factors of production
1-land
2-labour
3-physical capital /money
4-human capital /entrepreneur
Land

Land implies all types of natural resources used to create goods and services. In addition to land, it includes commodities such as gold, timber, oil, copper and water. Resources can also be renewable, such as forests, animals and food.

Henry's toothbrush uses a natural resource – sap from the baobab tree. His plastic toothbrushes are made from another natural resource, petroleum.

Labor

Labor is the work performed by employees. The value of their work depends on their education, skills and desire to do a good job. One of the goals of an owner is to train employees to become more skilled to increase their productivity. The output of labor can be both physical and mental.

Labor is a flexible resource. Workers can be allocated to different sectors of the economy for the most productive output.

In the beginning, Henry had to do most of the work himself. It took a while to build up his sales, but eventually, he was making enough profit to hire employees. Henry trained his employees to receive the shipments of sap and toothbrushes and place them in the warehouse. Next, he had other employees trained to operate the machines that injected the sap into small containers in the toothbrushes and placed them in boxes for shipping.

Capital

Capital includes the buildings, tools and machines that employees use to make goods and services. Some examples are forklift trucks, automated machines, hammers, computers and delivery vans.

Unlike land or labor, capital must be created by humans and designed for use by humans. In this sense, capital goods become the foundations for buildings, equipment, machinery and processes.

Henry's plant uses several different types of capital. He has forklifts to move products around the warehouse, and he has machinery that assembles the parts. His office uses desks, phones and computers to keep track of everything.

Entrepreneurship

Entrepreneurship is the driving force behind the creation of a business. An entrepreneur finds ways to combine the other factors of production – land, labor and capital – to produce a product and make a profit. The most successful ones are the innovators who create new products to bring to consumers. Henry is an innovator who is bringing a new product to market.

Without these innovative entrepreneurs, many products and services we take for granted in our everyday lives would not exist. Innovators look at the other three factors of production and find new ways to use them. They are willing to take risks to bring their ideas to fruition.




thnks hope it helps. u....