Question

What examples of the factors of production are used to produce a class of students?  Explain how each of them is used. Apply the concept of circular flow in the payment for the exchange of resources from the given scenario.​

Answer 1

FACTORS OF PRODUCTION USED TO PRODUCE A CLASS OF STUDENTS

• LAND: To setup up, a class or school land that is the physical space to accommodate the students and teachers is one of the basic needs along with other natural resources required.
• LABOR: Labor in such case may include the man force required that may include the students, teachers, or other non-teaching or administrative staff that come up together to form the class of students.
• CAPITAL: Capital is the third factor of production. Capital refers to the money required to make payments and make other resources available. Capital can also be in form of assets like furniture, blackboards and other stuff required provided they are not meant for personal use by anyone.
• ENTREPRENEURSHIP: It is the idea and concept that is invested behind the commencement of the school or class. It is one of the major factors that bring together the above three factors. It refers to the brain or thought that combines land labor and capital to produce the required product or service.

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