what are the factors of production? Write about each in short ?
Answers
there are four main factors of production: land, labor, capital, and entrepreneurship.
Land
In its simplest form, land is the physical place where economic activity takes place. In our lemonade stand example, it could be the patch of lawn in front of your house. However, land also includes all the natural resources found on it.
Labor
It seems obvious, but things can't be produced unless someone makes them. Your lemonade won't make itself, and it won't sell itself if you aren't there to do it. Therefore, another important factor of production is labor. Labor represents all of the people that are available to transform resources into goods or services that can be purchased. This factor is somewhat flexible since different people can be allocated to produce different things. Nobody has to produce everything themselves. That would be impractical. It's also important that a labor force is well educated and well trained to ensure that they can produce goods at peak efficiency and quality.
Capital
Perhaps to get your lemonade stand up and running, you also needed money to make signs to advertise your delicious drink. You may also have used a small table to set up your pitcher and cups. Both of these things - money and equipment - are considered capital. More specifically, capital can be the money that companies use to buy resources, as well as the physical assets companies use when producing goods or services, such as factories and machinery.
Hello Mate!
Factors of production are :-
Land :- The land is an important factor for cultivation. As vast as tge land will be , the production will be more because large land provide multiple cropping etc,.
Labour :- Unskilled, Semi - Skilled and Skilled labours are main factors. There is aboundance of labour in nature.
Capital : starting up any business you need money to invest. This is what we mean by capital.
Human Capital :- Last but not the least, most important capital amongst all is Human Capital because to arrange all these things we need a human to arrange in a specific way.
Hope it helps☺!