Question

What are the four factors of production ? Which factor is most scarce and why ?

Answer 1

Explanation:

It is a factor which helps in production. There are three types of labour-killed, semi-skilled and unskilled. ... Without entrepreneur, land, labour and capital are useless. Land is the most scarce factor because unlike capital, entrepreneurs and labour, it is limited and only a certain amount can be used.

Answer 2

Explanation:

the four factors of production are :-

⏩ʟᴀɴᴅ and other natural resources

⏩ʟᴀʙᴏᴜʀ that will do the work. some production activities require highly educated labour.

⏩ᴘʜʏsɪᴄᴀʟ ᴄᴀᴘɪᴛᴀʟthis is of two types -

➡ fixed capital - things like tools , buildings etc that can be used for a long term

➡ working capital - things such as raw material , water etc that are to be used at every stage of production .

⏩ʜᴜᴍᴀɴ ʀᴇsᴏᴜʀᴄᴇs the most important requirement is knowledge and expertise . without this nothing can be produced out of the other three requirements for production . this now a days is known as human capital or human resource .

the most scarce factor is land as land is limited and is also to be used for other purposes such as building homes , offices etc . Also population is increasing but not land . with this we can conclude that land is most scarce out of all these resources.