ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -There are four factors of production-land, labor, capital, and entrepreneurship.

Detailed explanation-2: -Economists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy. How these factors are combined determines the success or failure of the outcome.

Detailed explanation-3: -Entrepreneurship is influenced by four distinct factors: economic development, culture, technological development and education. In areas where these factors are present, you can expect to see strong and consistent entrepreneurial growth.

Detailed explanation-4: -The economic factors are such as capital, infrastructure, raw material, labour, and market. Without these economic factors a business can’t grow and earn profit. The non-economic factors are largely influenced by the society and country where the entrepreneur resides.

Detailed explanation-5: -Increase in capital investment in vital projects results in increase in profits which help in accelerating the process of capital formation. Entrepreneurship activity too gets a boost with the easy availability of funds for investment. b. Labour. Easy availability of right type of workers also effect entrepreneurship.