Explain the factors of production
Answers
Explanation:
factor of production are :
land
water
food
labour
good transport facilities
etc
Answer:
Land
In its simplest form, land is the physical place where economic activity takes place. In our lemonade stand example, it could be the patch of lawn in front of your house. However, land also includes all the natural resources found on it.
Labor
It seems obvious, but things can't be produced unless someone makes them. Your lemonade won't make itself, and it won't sell itself if you aren't there to do it. Therefore, another important factor of production is labor. Labor represents all of the people that are available to transform resources into goods or services that can be purchased. This factor is somewhat flexible since different people can be allocated to produce different things. Nobody has to produce everything themselves. That would be impractical. It's also important that a labor force is well educated and well trained to ensure that they can produce goods at peak efficiency and quality.
Capital
Perhaps to get your lemonade stand up and running, you also needed money to make signs to advertise your delicious drink. You may also have used a small table to set up your pitcher and cups. Both of these things - money and equipment - are considered capital. More specifically, capital can be the money that companies use to buy resources, as well as the physical assets companies use when producing goods or services, such as factories and machinery.
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.
The payment for land is profit.
Characteristics
He has imagination.
He has great administrative power.
An entrepreneur must be a man of action.
An entrepreneur must have the ability to organize.
He should be a knowledgeable person.
He must have a professional approach.
Hope it helps
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