Question

Name one of the factors of production which is fixed and scarce.

Answer 1

Answer:

Small farmers usually need to borrow money to arrange for the capital.

Explanation:

Small farmers usually need to borrow money to arrange for the capital, and are put to great distress to repay the loan. Therefore, capital too is a scarce factor of production, particularly for the small farmers. Though both land and capital are scarce, there is a basic difference between the two factors of production.