Question

what are the different factor of production? Explain each​

Answer 1

Answer:

There are mainly four factors of production:

1) LAND AND OTHER NATURAL RESOURCES: Land is the most important factor of production. Any production activity has to set on the land.

2) LABOUR: It is the manpower required to do certain work. The labour can be educated or uneducated depending upon the type of production activity.

3) PHYSICAL CAPITAL: It is the things other than land and labour essential for the production. There are two types:

1) FIXED CAPITAL: Machines are the basic example of fixed capital because they can be used over and over again.

2) WORKING CAPITAL: Money and raw materials have to bought again and again.

4) HUMAN CAPITAL: Humans are required for advancement of any production activity.