Question

Hey There!

What is Factor Of Production?

Answer in 20 words at least ​

Answer 1

Factors of production are divided into 4 categories:Land, labor, capital, and entrepreneurship.

$\bf\underline\pink{LAND:}$

✨The first factor of production i.e : Land includes all the natural resource used to

produce goods and services & anything that comes from the land.

✨Land resources are the raw materials in the production process.

✨Land resources can be renewable or

non-renewable.

$\bf\underline\purple{LABOUR:}$

✨Labor is the effort that people contribute to the production of goods and services.

✨Labour the largest source of income for most of the people.

✨If a person has been paid for a job, then he has contributed labor resources to the production of goods or services.

$\bf\underline\green{CAPITAL:}$

✨capital can be considered as the machinery, tools and buildings humans use to produce goods and services.

✨Capital differs based on the worker and the type of work being done.

$\bf\underline\red{ENTREPRENEURSHIP:}$

✨Entrepreneur is an innovator of new ideas and business processes. It is a knack of sensing opportunity where others are chaos, contradiction & confusion.

✨They provide large scale employment to artisans,technically qualified people & professionals.

✨The increase GDP & per capita income of the country.