Question

What are the four different types of factors of production?

Answer 1

Answer:

Land, Labor, Capital and Entrepreneurship

Explanation:

Factors of production are also called 'production inputs.'  They are used to produce goods and services in the country. Without them, no economic activity will proceed. They are land, capital, entrepreneurship, and labor.

1. Land: It comprises of all the natural physical resources that are exploited to aid production. Examples include fertile farmland, minerals, oils and gas, and space used to put up factories and other commercial ventures.
2. Labor: Refer to human input in production. It is the supply of human skills, time, and energy in facilitating production.
3. Capital: Are the resources used to produce other goods and services.  Capital includes physical and financial assets used to generate more products. They include machinery, equipment, factories, technology, and buildings.
4. Entrepreneurship.  An entrepreneur is the risk-taker in the production cycle. He invests financial resources in the business. He makes the other factors available and manages the production process.