what are the factors of production .write about each in brief ?
Answers
Explanation:
KEY TAKEAWAYS
Factors of production is an economic term that describes the inputs used in the production of goods or services in order to make an economic profit.
The factors of production typically include land, labor, capital, entrepreneurship, and the state of technological progress.
1. Land as a Factor
Land has a broad definition as a factor of production and can take on various forms, from agricultural land to commercial real estate to the resources available from a particular piece of land. Natural resources, such as oil and gold, can be extracted and refined for human consumption from the land. Cultivation of crops on land by farmers increases its value and utility.
2.Labor as a Factor
Labor refers to the effort expended by an individual to bring a product or service to the market. Again, it can take on various forms. For example, the construction worker at a hotel site is part of labor as is the waiter who serves guests or the receptionist who enrolls them into the hotel. Within the software industry, labor refers to the work done by project managers and developers in building the final product.
3.Capital as a Factor
In economics, capital typically refers to money. But money is not a factor of production because it is not directly involved in producing a good or service. Instead, it facilitates the processes used in production by enabling entrepreneurs and company owners to purchase capital goods or land or pay wages
4.Entrepreneurship as a Factor
Entrepreneurship is the secret sauce that combines all the other factors of production into a product or service for the consumer market. An example of entrepreneurship is the evolution of social media behemoth Facebook.
5.Technology's Role in Production
While it is not directly listed as a factor, technology plays an important role in influencing production. In this context, technology has a fairly broad definition and can be used to refer to software, hardware or a combination of both used to streamline organizational or manufacturing processes.
Answer:
The factors of production are :
Land
Labour
Pyhsical capital
Human capital
Land..... It is the basic requirement for production like minerals and water
Labour.....the people work in this. Some activities of production need more and educated labour for better production.
Physical capital....... It is the third factor it is of 2 types.
Fixed capital....
Capital required the production for many years. Buildings tools etc
Working capital......
It include raw material and money in hand ...
Human capital......to arrange these capital we need a human to arrange it . He hire the best business man to manage and his aim was to made profit....
Hope u understand it..