Question

using examples, explian the factor of production, capital

Answer 1

Explanation:

there are four factors of production

1. land or natural resources

2. labour

3. physical capital

4. human capital.

.

1. land or natural resource - to produce anything we need land and natural resources.

eg. - a factory wants a big land to get built up .

2. labour - for production it is necessary that we need people or labour force.

eg - a factory needs labour to work

3. physical capital - capital is also necessary for production.

eg - a company uses capital to establish a factory to buy raw material.

4. human capital - the knowledge and enterprise to keep all this things together and produce an output is also important.

eg - a factory is headed by g.m or leader which regulates all work.