Question

Write down the various characteristics of various factors of production

Answer 1

A. Land is a fixed factor of production.

b. It is a free gift of nature.

c. It is a passive factor of production.

d. Production from the same piece of land can be increased by using various modern techniques.

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a. Labour is an active factor of production.

b. Efficiency of the labour can be increased through training.

c. Farm labourers come either from landless families or families cultivating small plots of land.

d. Wages are paid to the labour in lieu of the service.

e. Labour can be either skilled or unskilled.


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a. It is a man-made source of production.

b. The capital is of two types, ie., fixed capital and working capital.

c. It is a passive factor of production.

d. The capital has an economic value.