Question

Human resource is an indispensable factor of production justify.

Answer 1

Humans have the knowledge, skill and the adequate technology to make the maximum utilization of the resources around us. Humans are not only able to utilize and make proper use of resources but even search for new ones. With training and education humans become capable enough to create more resources.

It is an important factor also because when other factors of production (Land, Labour and Physical Capital) are applied, then one needs to control, supervise or look after these. Also, it is the Human Capital which makes the profit possible.

Answer 2

Human resource is the indispensable factor of production. This is because :- 1)Land and other resources are specified, fixed or limited but human resources can be nurtured through education and health. 2)Human resources can bring change in other resources, while other resources cannot change or affect human resources. 3)Human resources can make use of land and capital. Land and capital cannot become useful on its own.