ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What are some examples of labor as a factor of production? Labor is the effort that people contribute to the production of goods and services. Labor resources include the work done by the waiter who brings your food at a local restaurant as well as the engineer who designed the bus that transports you to school.

Detailed explanation-2: -Capital as a Factor of Production For example, a company that purchases a factory to produce goods or a truck that is purchased to do construction are considered to be capital goods. Other examples of capital goods include computers, machines, properties, equipment, and commercial buildings.

Detailed explanation-3: -Transportation is an economic factor of production of goods and services, implying that it is fundamental in their generation, even if it accounts for a small share of input costs. This means that irrespective of the cost, an activity cannot take place without the transportation factor and the mobility it provides.

Detailed explanation-4: -Economists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy.