Question

What do you mean by the term production? Explain the four factors of production.
( IN 70 - 100 WORDS )

Answer 1

Answer:

Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output). It is the act of creating an output, a good or service which has value and contributes to the utility of individuals.

Explanation:

Factors of Producton

The resources available to an economy, namely Land, Labour, Capital and Entrepreneur, for the production of goods and services.

Utility

The value, or satisfaction, that people derive from the goods and services they consume and thwe activities they pursue.

Labour

Human effort that can be applied to the production of goods and services.

Land

The resources of nature that can be used for the production of goods and services.

Capital

A factor of production that have been produced for use in the production of other goods and services.

Entrepreneur

A person who, operating within the context of a market economy, seeks to earn profits by finding new ways to organize factors of production.

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