What are the major factors of production?
Labour and land
B
Land and capital
Capital and labour
Land and technology
Answers
Answer:
land, labor, capital, and entrepreneurship. The first factor of production is land, but this includes any natural resource used to produce goods and services.
Answer:
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.
- 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.
Entrepreneurship is the drive to develop an idea into a business. An entrepreneur combines the other three factors of production to add to supply. The most successful are innovative risk-takers.1
The income entrepreneurs earn is profits.