ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In economics, factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.

Detailed explanation-2: -4 Key Resources-The four basic kinds of resources used to produce goods and services: land or natural resources, labor or human resources, capital, and entrepreneurship.

Detailed explanation-3: -Entrepreneurs purchase natural, human, and capital resources and use them to produce goods and services. The entrepreneur hopes that many consumers will buy the goods and services so that he or she can make a profit. Entrepreneurs are the “risk takers” in the production process.

Detailed explanation-4: -All goods and services are produced using productive resources (also known as factors of production). These resources are divided into four broad categories: natural (land), human (labor), capital and entrepreneurship.