Question

What are the factors of production? Briefly explain each factor. (class 9)​

Answer 1

Answer:

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Explanation:

Factors of production are the resources that help to produce goods and services. For example, Land, Labour, Market, Capital are the main factors of production. 1. Land is the naturally occurring materials of the planet that are used for the production of goods and services, including the land itself; the minerals and nutrients in the ground; the water, wildlife, and vegetation on the surface; and the air above. 2. Labor is the mental and physical efforts of humans (excluding entrepreneurial organization) used for the production of goods and services. Labor includes both the physical effort of factory workers and farmhands often associated with labor, as well as the mental effort of executives and supervisors. 3. Entrepreneurship is the special sort of human effort that takes on the risk of bringing labor, capital, and land together to produce goods. Entrepreneurship is the factor that organizes the other three. Without someone to organize production, the other three factors do NOT produce. A key component of entrepreneurship is risk. 4. Capital is the manufactured, artificial, or synthetic goods used in the production of other goods, including machinery, equipment, tools, buildings, and vehicles

Answer 2

In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, finished goods and services. The utilized amounts of the various inputs determine the quantity of output according to the relationship called the production function.

The four main factors of production are

• Land

The first factor of production is land, but this includes any natural resource used to produce goods and services. Land resources are the raw materials in the production process. These resources can be renewable, such as forests, or nonrenewable such as oil or natural gas.

• Labor

Labour actually means any type of physical or mental exertion. In economic terms, labour is the efforts exerted to produce any goods or services. It includes all types of human efforts – physical exertion, mental exercise, use of intellect, etc. done in exchange for an economic reward.

• Capital

When economists refer to capital, they are referring to the assets–physical tools, plants, and equipment–that allow for increased work productivity. Capital comprises one of the four major factors of production, the others being land, labor, and entrepreneurship.

• Entrepreneurship

An entrepreneur is a person who combines the other factors of production - land, labor, and capital - to earn a profit. The most successful entrepreneurs are innovators who find new ways produce goods and services or who develop new goods and services to bring to market.